Forex Trading Strategies – The Best Strategy to Make Profits Quickly
This Forex trading strategy is simple to understand, easy to apply and catches the big profits from the really big trends in around 30 minutes a day. Anyone can learn this trading method quickly so let’s take a look at it.
Most traders never focus on the big long term trends but if you look at a Forex chart, there are trends which last for many weeks or months and if you catch these trends, with leverage on your side you can make huge gains.
So how do you get in on these great long term trends?
If you look closely at any currency pair, you will see that most of the big trends start from breakouts to new market highs and they also continue from them.
The way to make money therefore is to get on and hold the big trends, by buying breaks of resistance. It’s simple, its logical and it works but most traders don’t do it, before we look at how to make money at breakout trading, lets see why most traders ignore its profit potential.
The reason is simply most traders are obsessed with predicting the market in advance they want to buy low and sell high. When they see a breakout, they have missed the first part of the move and want to wait for a pullback to get in but the best breakouts don’t pullback and this trader misses the move.
The experienced trader doesn’t care about predicting or missing the start of the move and why would they? The best breakouts continue and pile up big gains, these traders are not interested in perfection, just making money and that of course is the aim of any Forex trader.
So what are good breakouts?
You can trade breakouts of any level which has been tested at least twice but not all breakouts continue in the direction of the break; the ones that do, are the ones which are considered important by the market and these are normally at least six tests, when breakout trading keep in mind the more tests the better.
You will normally get a few good breakouts each month and I know traders, who trade once or twice a month and earn triple digit annual gains and you can too.
Breakout trading is very low risk because your stop is always tight (just below the breakout level) so if your wrong, your out with a small loss and if the trend runs, the profit potential is huge.
Breakout trading can be done without indicators but we like to use a few to confirm price momentum is accelerating as the breakout occurs, to increase the odds of success and we will look at some of these, in the next article in this series.
As long as markets trend, breakout trading will work and make money. It’s so easy to understand and apply, that any trader can quickly put together a breakout trading strategy and make big gains in 30 minutes a day or less.