There is a big myth that markets move to mathematics and you get lots of Forex trading software programs which claim they can predict Forex prices in advance but this is rubbish. Think about this:
In the last 50 years, we have seen computers and software applications become more complex and powerful than ever yet, the ratio of losers to winners, remains the same as it was 50 years ago 95%. Complex systems therefore are not the route to big gains that many people claim. Simple systems have always worked best and always will, because they are more robust, with fewer elements to break than complex ones.
If you want to win you don't need to prices, you can simply wait for the reality of price change, to confirm a high odds trade. You can then enter your trading signal and the following Strategy is a simple and effective way of trading the reality of price change, let's take a look at it.
Look at any pair of currencies and you will notice long term trends which reflect the underlying economic cycle which last for a long time. Look at the chart again and you will see that any currency will start its uptrend, by breaking to new highs and continue its trend from them. Therefore, instead of predicting prices the way to get in on the big trends is to simply buy these breaks of resistance.
You need to be selective on the breakouts you buy and the more times a level has been tested the better and the wider the spaces in time between these tests the more valid the breakout will be. Look for levels other traders and analysts consider important and when these levels break, great trends can develop and that means big profits.
When trading breakouts, be patient and wait for the right opportunities and look to trade longer term trends.
If you're wrong, your risk is low as your stop can be just behind the breakout point. I know traders who make triple digit gains by losing 70% of the time! The reason for this is there profits are huge on the trends they get right and their losses, very small on the trends they get wrong.
If you want a simple way to make big profits, learn to trade long term breakouts and you could soon be making triple digit profits, by working for just 30 minutes or less per day.
NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's, with 50 of pages of essential Forex info and the Best Forex Methods for Success visit our website at: http://www.learncurrencytradingonline.com
Article Source:
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment