Not many traders use the powerful Forex strategy enclosed, despite the fact it works and will continue to work. Most professional traders use this method and if you use it, you can make huge Forex profits in 30 minutes a day or less.
The majority of traders lose and this losing majority spend there time trying to buy low and sell high and while this is an accepted investment wisdom, it doesn’t work in Forex trading – why? Because it means you have to predict where Forex prices are going to go, that’s just hoping or guessing and won’t lead you to success.
The majority of the elite 5% of traders, who make big Forex profits don’t predict – they simply base their trading strategies on trading the reality of price change via breakouts.
Breakout trading works and will continue to work, so let’s examine what it is and how to do it.
If you look at Forex prices and how bull trends, start and continue, you will see they start there trends by breaking to new market highs and continue there trends from them, therefore, all you need to do is buy breakouts of important resistance levels, to get in on all the biggest trends and if you hold them, you will make a lot of money.
Most traders (as we noted earlier) want to predict a trend in advance, therefore, they don’t buy a trend in motion. When a breakout occurs, they wait on the sidelines and hope there is a pullback and on good breakouts, you don’t get one and you can see this on any currency chart.
To make big profits, when a breakout occurs you have to buy the break as it happens. Don’t worry about missing the very first bit of the move, if the breakout is a good one, you will have lots of the trend ahead of you and lots of profit too.
Look for levels which have been tested a few times and have held the advance in the past. While the minimum number is to tests is two, you want more and I never trade less than six tests. In breakout trading, it’s the more tests the better and if the time period between them is wide, this makes the breakout even better, if it comes.
The beauty of breakout trading is most traders will never do it but don’t let that bother you, 95% of traders lose money!
Breakout trading will always work, as markets will always trend and if you learn to trade breakouts correctly, you can make some huge profits.
Just look for important levels to break, use some momentum indicators to filter your trades and you have a simple, powerful trading strategy, the pro’s use and you can too. Learn how to trade breakouts and you have one of the best proven, trading strategies for long term Forex trading success.
By: Samuel Leslie Berkovits
