Many people spend their time buying worthless Forex robots, which don’t work, trying to predict price movement in advance when it can’t be anticipated or building complicated strategies to beat the market, and they lose. Here is a simple Forex trading method which simply lets you trade price action, which anyone can learn, and even better, it will get you in on all the significant trends and profits – let’s take a look at it in more detail.
How do significant Forex trends all start?
Ask most traders this, and they can’t give the correct answer. Hence, the answer is – ALL significant currency trends begin by breaking out above resistance and continue their directions by smashing through overhead chart resistance, and this means that to get in on all the best trends and profits – you should buy breakouts.
When you are trading with a breakout strategy, you don’t predict; you simply buy price action and the reality of the break, and by its very nature, if you trade the high odds breakouts, the risk is low, and profit potential is high. Your stop is below the breakout point, and if you are trading a good one, the reward can be ten times or more what your risk is. Best Forex Trading Methods
So what breakouts should you look to trade?
You should be selective and patient and look for levels other traders feel are essential, and in most instances, the more times the standard has been tested and held before the breakout, the better. You also need to be aware of the distance between the tests in terms of time and as general guide, the wider the tests are apart, the better – so look for at least six tests and two should be at least a month or two apart – wait for the level to give way and enter your trading signal.
You can trade just a few good breakouts a month and make triple-digit gains. You don’t need to make your Forex trading strategy any more complicated than using resistance levels and a few momentum indicators to confirm the move, and you will increase the odds of success even more.
The logic of breakout trading is easy to understand and learn. You can then put together a simple Forex trading system to catch the big breaks and big profits and start making a high second income. Breakout trading is simple. Still, it’s also very profitable, and if you want a Forex trading method for significant gains, you should consider it.