best forex trading robots reviews

To put together your own Forex trading strategy based upon the enclosed information only takes a week or so and you can then be targeting triple digit gains in around 30 minutes a day. Let’s take a look at it…

The first point to keep in mind is that any strategy you use should be simple and this one is. Why should it be simple?

Why Complex Theories will Lose you Money

The big thing in Forex trading at the moment is using complex mathematical formulas to predict. We apply mathematics in everyday life and it works but it won’t work in Forex, because Forex markets don’t move to mathematics.

You can make complex systems but they will simply get wiped out, because Forex markets are an odds based market and for odds based market, simple systems are best as there more robust with fewer elements to break.

There are those that still believe they can predict and that mathematical formulas exist that work but if there was such a system, we would all know what would happen next and there would be no market.

Simple Systems Work Best

The Forex strategy we are going to look at is simple and is based upon buying breaks to new chart highs and lows and its obvious why this works and that is markets trend. Any big trend starts and continues from breakouts and you can see this on any Forex Chart.

Trading the Reality

Trading a breakout has another advantage, it trades the reality of price change and doesn’t predict. I read a lot about predictive systems, but they don’t work, as predictions are really guesses and you won’t get rewarded for that, in life or in Forex trading.

Why Most Traders Can’t Trade Breakouts

It’s easy to do logical and it works but most traders have a mental block about doing it, as they want to be in at the exact top or bottom and think they have missed the move and want it to pullback, giving them a better entry point. This of course doesn’t happen, the trend continues and the trader waiting misses it.

Breakout trading is all about putting the odds on your side and on good breaks, the odds favor a continuation of the move. You miss a bit at the start but there is more profit on the way and that’s your aim – to make a profit, not try and buy lows and sell highs which is impossible!

Putting the System Together

Not all breakouts are valid and you have to find the best ones and furthermore, to put the odds on your side even more, you need to confirm them by looking at momentum and we will look at this and more in part 2 of this article series, as we put together a simple robust Forex trading strategy for profit.

Here we will look at some simple tips which can make any Forex treading strategy more profitable and reduce risk at the same time. Here are your Forex tips for bigger profits…

The first tip is an obvious one but very few traders incorporate it in their trading plan.

1. Reduce Trading Frequency

Most traders think the more effort they make and the more they trade the bigger their profit potential but the reverse is true.

The big high odds trades only come around once or twice a month and you should be patient and wait for them. I know traders who trade about once a month and make triple digit gains; these traders are not interested in trading the market noise, they simply wait for high odds trades.

Related to the above point is – you should never day trade or scalp, as you cannot get the odds on your side, as all short term volatility is random.

Look at a Forex chart and you will see the big profits come from the big trends that last for weeks and months so focus on them.

2. Trade Breakouts

If you don’t know anything about breakout trading its time to learn about breakout methodology, and make it part of your essential Forex trading education – Why?

Because all big trends start and continue from new chart highs or lows and going with these breaks, will get you in on all the big trends and profits.

Many traders make the mistake of trying to predict highs and lows but that’s doomed to failure, as prediction is simply hoping or guessing. Trade the reality of price change with breakouts and you will have the odds on your side and that means bigger profits with less risk.

3. Place Stops Correctly

Most traders simply place stops in areas where they will get taken out by short term volatility which takes them out of profitable trends to soon.

Most traders don’t have a problem with initial stop placement, but want to trail it to close once the trend is underway. By trying to restrict risk, they create a scenario where they will never make a big profit. Never trail stops to close and always trail them outside of random volatility. You will have open equity dips in the short term, but keep your mind focused on a large banked profit.

Summing up

The above tips are simple to learn and apply and can lead you to bigger Forex profits and long term currency trading success.