Forex Trading System - The Simplest Way to Make Triple Digit Gains
Author: Kelly Price Here we will look at how to build a simple Forex trading system which can make you big profits, in under 30 minutes a day so anyone can seek success with it.
Look at any Forex chart and what do you see? You see long term trends which can last for many weeks, months or even years in there duration. You will also notice that any currency in an up trend will start its trend by breaking new highs and it will also continue its trend from them.
The logical conclusion is if you buy these breakouts, you can catch any big trend and follow it.
Simple as this may sound, most traders simply cannot do it and the reason is simple:
Traders think they have missed the first bit of the move so they wait for a pullback in price, so they can get in at what they consider a better price.
The problem is prices on the best breakouts, simply carry on and don't come back; the trader who waited, therefore waits in vain and misses the trend. The trader who took the move, didn't care that he had missed the start of the trend, he knew there was more profit to come.
So how do you decide what breakouts to buy?
What you need to pick are levels that have been tested a few times and if the tests are widely spaced in terms of time, the better the odds of success. Normally, the minimum number of tests is just two but you should really look for six or more, as these levels are likely to considered important by traders and when they break, the odds of a continuation are high.
When the break does occur, you need to have some stop loss protection, so you put your stop nice and tight - behind the breakout point. If you are wrong, your loss will be small and on the best breakouts, the rewards are fantastic, so you have low risk and high rewards.
By doing the above, you are basing your trading, on sound money management which is the key to long term success.
Should you use just price action or add indicators?
I know traders who simply use price action but I always think a couple of momentum indicators to gauge the strength of the break, is a good idea and you can learn these quickly.
If you are trading a breakout method, you will get a few good breakouts a month and you can do all your Forex analysis in 30 minutes a day or less.
This method is simple to understand, easy to learn and have confidence in and it piles up huge gains, so you make more profits, in less time!
With breakout trading, you don't have to predict anything, all you do is trade the reality of price change and if you do it correctly, you can earn triple digit gains and have a great second income.
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