The best way to make money at Forex trading is to follow the big long term trends which can make huge profits with leverage on your side but how do you do it? Enclosed you will find a simple trend following system anyone can use and enjoy currency trading success.
If you look at any Forex pair you will see big trends, these trends don't last a few days or weeks, in many instances they last for many months.
If you look at how they start and continue, you will notice they break to new highs or lows, so if you buy or sell breakouts, you have a great way to get in on the trends. Most traders though fail to do breakout trading and it's due to having the wrong mindset.
Most traders want to predict exact highs and lows and this is impossible; when they see a breakout they don't take it because they want prices to pullback and get in at a better price but of most good breakouts don't pullback and these traders fail to pull the trigger and get in on the trend.
If you have a support or resistance line which has held several times and then suddenly breaks, the odds favour a continuation. When looking for good breakouts you need areas that the market feels are important and when they break a trend starts or continues.
The more times an area is tested and the wider apart these tests are in terms of time the more valid the breakout tends to be.
When the break occurs you simply place your stop below the breakout and wait for the trend to develop. Be careful not to move your stop to quickly, keep it back outside of the noise and let the trend run.
If you want to get the odds even more in your favour on breakouts, use some momentum indicators to confirm the move, there are plenty to choose from but we like the stochastic and RSI - Check them out they will only take you an hour so to learn.
Breakout trading is simple to understand and easy to do and you will normally get a few good breakouts a month that can get you in on the big Forex trends and big Forex profits.
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