Forex Trading Strategies – a Simple One to Get You on the Road to Financial Freedom

Jul 14, 2010 by mariodm

Anyone can learn to trade and make money at currency trading and here we will reveal a timeless Forex trading strategy, that’s simple to understand and works.

Many traders make the mistake there simply going to be able to follow someone else and get success with no effort and there is a huge industry in Forex Robots which of course don’t work. No if you want success, just like in all areas of life you need skills you can understand and this will enable you to apply them with confidence and discipline.

Trade the Breakout

The big trends in currencies start from chart breaks to new highs or lows. Look at any Forex chart and you will see this occur again and again. Even better, not only do the best trends start from breakouts, they continue form them as well and these big trends can last for many weeks or months…

Most Traders Cant do It!

While it sounds simple to buy and sell breakouts most traders wont even consider doing it and the reason is they want to get in at the exact top or bottom now, that impossible but most traders want a dip to get in, at what they perceive is a better price – but of course, the price doesn’t dip and the trend continues.

The brave trader, simply gets in and knows he has the odds on his side and sure he missed a bit on the way in – but the odds mean there is a ton more of profit to come and he will be in the trade and making money which is what Forex trading is all about!

Be Selective in Your Trades

With breakout trading, the key is not to trade often but only hit breaks that have proved to be significant support or resistance in the past and are considered strong levels by traders. When the break occurs it is likely to continue.

I know traders who trade less than a dozen times a year but make triple digit gains using this method and you can too.

Another key to trading breakouts is to confirm that price momentum is accelerating through the breakout point.

For this you need to learn to use momentum indicators. Two of the best are – the stochastic and the RSI. you can learn all about them in an hour or two – if they support the break, then the odds of continuation and your profit are too.

Simple Systems Work Best!

Never make your strategy too complicated – just simple charts and a few momentum indicators are all you need. Simple systems work best, as there more robust. Complicate a trading method and it will have too many elements to break.

It sounds simple and it is – the hard part is running profits. Stops are easy, under the breakout point but if you are long term trend following, you will have allow pullbacks into your open equity and this means holding the stop back and trailing slowly to stay outside of this volatility. You need discipline and confidence to do this but it pays great dividends in terms of profits.

The big trends in currencies last for many weeks, months or years and trend following them via breakouts can pile up huge gains.

A Simple System for Big Gains in 30 Minutes a Day

You can put together a simple Forex breakout trading strategy in a week or two and soon be making big profits in around 30 minutes a day and as long as markets trend a breakout system will make money.

So get the right Forex education and learn to trade breakouts, it’s simple to understand and apply and you can enjoy currency trading success with this timeless methodology – good luck and good trading.

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