Forex Trading Strategy – The Simple One the Top Millionaire Traders Use For Triple Digit Gains
Sunday, January 10th, 2010The Forex trading strategy enclosed is ignored by most new traders but it’s the one the savvy, millionaire traders use and is at the heart of some of the world’s top trading systems. And even better, it’s simple to learn so you can use it too.
The Forex trading strategy we will look at here is based on how ALL big currency trends start and continue and if you look closely at any currency pair, a bullish currency trend starts by break to new market highs and as the trend continues and develops, the currency will continue to break new market highs. The best way to get in on all the biggest and best trends is therefore is to buy breakouts- it’s easy and it works, so why don’t most traders do this?
The novice trader thinks, that to win he needs to predict trend changes in advance and rather than buying breakouts, he continually buys dips to support and hopes the level holds but in most cases he gets stopped out and eventually losses his equity.
You cannot predict Forex prices in advance so don’t try! If you want to win you need to trade with the odds on your side and the best way to do this is by trading the best breakouts – so which breakouts should you trade?
You need to be selective and pick only levels of resistance, the market feels are important and in terms of this, the more tests before the eventual break the more likely the breakout, will see a follow on in terms of the direction of the break will. Look for six or more tests, befoire the break takes place and also, look for two of the tests to be in time frames which are at least a few weeks apart. In fact, the wider the time frames the more valid the break.
You don’t need to make breakout trading complicated, you can simply can use a bar chart and few confirming momentum indicators and you will then have a robust and simple strategy which is proven to make big gains.
Many of the world’s top trading systems are based on trading breakouts and you should consider basing yours on this method to – its easy to understand and have confidence in and will always work , as long as currencies trend and that will never change.
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