Forex Trading Strategy - A Simple Strategy That Will Always Make Huge Gains
The Forex trading strategy enclosed will always make money and it takes very little time per day to apply, it's great for novice traders as it's so simple to learn - lets take a look at it in more detail.
I was introduced to this strategy over 25 years ago and started using it and it still works today. When reading some interviews with top traders I read one about the turtles who were a group of ordinary people, who were taught to trade by legendary trader Richard Dennis. He took a group of people with no experience of trading and taught them in just two weeks to trade.
They then all went on, to make millions of dollars and many of them still trade successfully today. What got my attention is they learned to trade in just two weeks and I Had been trying for years with no success!
So what Forex trading strategy did they use?
While at the time the system was not revealed, the logic was and it was this:
All currency pairs trend for long periods, either up or down and all the biggest trends start from breakouts to new price highs or lows and furthermore, they continue there trends from these breakouts. If you look at any currency pair you will see this happen but most traders don't like buying or selling breakouts.
Until then, I had been trying to buy into support and sell into resistance I.e. I was hoping these levels held ( like most traders do) and losing. This strategy got rid of prediction or hoping and guessing and simply traded the reality of price change and it's obvious why it works:
Most traders (me included at that time), don't like to buy or sell breakouts because it looks like, you have missed the first part of the move and you have but what this strategy does is put the odds on your side.
Although you have missed the first part of the move, that doesn't matter because, if the breakout is a good one, it will simply continue and you have lot's of profit ahead of you.
A good breakout is one that breaks a level which has previously been tested and held and in terms of a good breakout it's - the more tests the better.
I look for a minimum of six tests and a level most traders think is important. When the level breaks, the chances of a continuation of the trend are high, as most traders won't buy or sell breakouts .
Stop losses are easy - right behind the level which has broken which gives you low risk, you then simply wait for the trend to go in favour of the breakout.
Breakout trading is simple and it works in fact, it will always work as long as markets trend and that will never change, as long as we have a free market economy.
Breakout trading is simple, it's obvious why it works and it will always work - so discover one of the simplest and one of the most effective ways to help you achieve Forex trading success. Make breakout trading, part of your essential Forex trading education and get on the road to currency trading success.
Article Source: http://www.Free-Articles-Zone.com
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