Sunday, February 25, 2018

Forex Strategy – Ride the Major Trend Every Time

March 28, 2010 by  
Filed under Forex Strategy

This method is often use by a lot advanced forex traders and they make a big loaf of money from their FX trading. This method may a bit hard to digest at first, so read as much as you can. It can really help you make more money from forex by just 30 minutes a day.

But before we look at this method in greater detail. I like to bring your attention to an online industry which trying to educate the public that Forex market can be predicted. Since the Forex market can be predicted, this industry create a software or a number of programs that trade for you and make you money automatically. All you need to do is to buy these software, install, let your computer run, and you are on your way to become a millionaire.

If only that is so true, so that no one will be working for their rice bowl and dough and we need to change the world richest man list.

The fact is we can never predict the Forex price and the market. If it is predictable, it will not be that profitable, or it will be extremely overprice. Just look at bonds and Berkshire Hathaway ‘s share price.

Forex is unpredictable: How do we make money out of Currency Trading?

Simple, trade the odds. You just need to trade charts that has high probability and set ups. Moreover, this Forex trading strategy is riding on big bull or bear trends which breaks new charts high or low.

Just look at any currency pair and you can notice that whenever a trend start and continue, all you need to do is buy or sell those breakouts and you have a good odds of success in your favor. This is of course result in profits.

Breakouts- Which ones are the Best to buy?

All you need to do now is to look for several test before the breakout. This is where the resistance or support line has hold it’s ground and it has been tested many times but still hold. Look out for two of these test in a month or how long are these two test on the support or resistance. The wider the time frame in between the tests, the better the odds of breakout the support or resistance.

What you should do when it break out?

When the market starts to trend, you can start to trade those breakouts. It may seems simple, yet it can generate a lot of money. Risk is low as your stop loss, just put it below the price the level it broke. Trends like these last for weeks, maybe months, making these breakout trades extremely profitable.

Looking on support and resistance levels is sufficient for this strategy. Just use a few trading indicators to time your move and to check your price momentum. If these are in your favor, you will have a forex trading strategy that can make a lot of money for you in just 30 minutes a day.

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