by Kelly Price
The Forex trading strategy works and will continue to work and is the choice of some of the world's top trading systems and if you want to make big gains you should use it too. Let's take a look at it and how you could soon be making triple digit profits in around 30 minutes a day...
The Forex trading method we will look at here is the choice of the savvy professional trader but very few novices choose it and I will explain why in a moment but for now let's look at the trading strategy itself. Currency prices trend and its the aim of all traders, to lock into price trends and hold them for big profits but how do you enter these trends when the risk reward is at its best?
The answer is buy buying and selling breakouts to new chart highs and lows. If for example, you look at any currency which is in a bull trend, you will notice that the trend will have started I by breaking to new market highs and would have continued its trend by doing this.
So if you want to make money trading Forex you should base your strategy on trading breakouts. If you buy the best breakouts, you can make huge gains and get in on all the big trends and we will look at how to do this in a moment - but let's look at why most traders don't use this method, despite the fact it's logical and makes money?
The reason is most traders think they can predict lows highs but this is one of the biggest myths of trading. If you try and predict a low for example, your simply hoping and guessing and will lose. The losing trader cannot in a bull trend go with a breakout to the upside, because he wants to buy low, he knows the break is bullish but wants a dip in price to get in, this doesn't occur on the good breakouts and he misses a great trading signal.
The breakout trader knows, that while he has missed the exact low, the odds heavily favor a continuation of the trend and focuses on the profit he is going to make, not the little bit of the trend he has missed!
The best breakouts include numerous tests before the break occurs. The more times the level has been tested the better the odds of the breakout being a good one. Be patient and selective when trading breakouts and look for areas other traders and the news feels are important. I like to look for at least 4 tests before looking to trade a potential breakout.
Breakout trading is one of the easiest ways to make big profits, not many novice traders use this method but don't let that bother you, most novices lose money! If you want to win, trade with the pros and trade breakouts for bigger Forex profits.
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