Forex Trading Method - A Simple Method For Triple Digit Annual Gains
Written by OnlineLoan on 01:54Forex Trading Method - A Simple Method For Triple Digit Annual Gains
By: Kelly Price
The Forex Trading method enclosed can be incorporated in your Forex trading strategy and will quickly help you make bigger profits. It's simple to learn, easy to understand and will help you make bigger profits...
Firstly let's look at a common mistake many traders make with their Forex trading methods.
Most traders think that prediction is the way to make money in Forex trading - but predicting is hoping or guessing and your predictions will end up like your horoscope! Markets don't move to some mystical mathematical formula - if they did, we would all know the price in advance and there would be no market.
Trading the Reality, Trading Breakouts
The best way to trade to get the odds on your side, is simply to trade the reality of price change, as you see it on a Forex chart. This means trading breaks to new highs and lows, breakout trading methods work and will always work for one simple reason:
Most trends start and continue from new market highs or lows and as long as markets trend, going with breakouts to new highs and lows will work.
Why Most Traders can't Do it
Most traders can't trade breakouts though, because they are obsessed with pinpoint market timing (which of course is not possible) and they think they have missed a bit of the move, so they sit back and want to get in at a better price.
As breakouts tend to carry on in the direction of the breakout, a pullback does not come and the trader who waits misses a great trend and profit.
A Breakout Strategy for Big Gains
If you want to trade breakouts then you only need a simple Forex trading strategy and it should consist of spotting trades on the chart and maybe using a couple of momentum indicators to confirm the move.
In any form of Forex trading system simple systems beat complicated ones because they are more robust and has fewer elements to break. If you don't want to make your own, here is a simple one that works.
A Breakout Method that Has Worked for Over 25 Years
The strategy below is so simple but has made millions for savvy traders and has just one rule which you simply follow. Devised by trading legend Richard Donchian it's outlined below.
Buy breaks to new 4 week highs or lows. When in the market, wait for a new 4 week low or high to be hit and reverse the position - simply keep buying and selling new 4 week highs and lows as there hit and always maintain a position in the market.
You can't get much simpler than that! Try it though and you will see it works.
A simple Timeless Method for Gains
If you want to use breakouts the logic is easy to understand and it's very profitable.
If you want currency trading success then with breakouts you know you are trading the reality and have the odds on your side and that means bigger profits and less risk - check out this trading methodology in more detail and you maybe glad you did.
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