Here we will outline a Forex trading strategy anyone can understand and apply for success. It works and will continue to work so here it is…
First let’s look at common mistakes that Forex traders make in terms of their Forex trading strategy and there are two which are common and lead to losses.
Trying to Predict Prices in Advance
Forex prices simply cannot be predicted and if you predict, you’re hoping or guessing and that won’t make you money, as your predictions will be as accurate as your horoscope!
You need to trade the reality of price change only and get the odds on your side.
Too Many Inputs
Many traders think the more inputs they have in their Forex trading system and the more complicated it is the better but there is no correlation between the number of inputs and Forex trading profits. Have to many inputs and the system will break in the brutal, hard world of Forex trading.
You should only have a few inputs or parameters and I know many systems which use just one rule and win.
The simplest way to make money is to use a Forex breakout strategy.
This means buying new highs and selling new lows. It’s a fact that most big moves start and continue from new market highs and lows and if you go with them you can make a lot of money. You’re not predicting, you are simply trading the reality of price change as you see it on a Forex chart.
Most traders don’t like trading breakouts, as they feel there not getting in at an exact top or bottom but as you can’t do this anyway, you shouldn’t try!
These traders lose, because they think pinpoint trading is the way to make money but its not – its trading a move when the odds are at there highest, that the move will continue in your favour and that’s what breakout trading gives you.
Breakout trading is all about making big profits and that should be the aim of any Forex trader not trying to be perfect or clever – you won’t get rewarded for that!
Use a simple breakout Forex trading strategy which you understand and can apply with discipline and you’re on your way to Forex trading success.