Here we will reveal a system for currency trading profits, which has a logic that is so simple, ANY trader will see why it works, and why it will continue to work, as well as how they could be making big currency trading profits too!
If you use this system in currency trading, you will have the potential to catch EVERY major currency trend.
We have all heard this investment wisdom: 'To make money buy low sell high'
However there is a better way to make big currency trading profits and the wisdom here is: 'Buy high and sell higher'
This will become clear with some explanation:
Ignore Traditional Investment Wisdom if you want the Big Profits!
If you want to 'buy low and sell high' you have to guess where a market is going to bottom and this is not easy. You are trying to PREDICT where a trend might start - this very often means the market goes lower and you lose.
Investors and traders are taught to 'buy low and sell high' but when a huge move starts they watch and wait for the pullback - it never comes, the market simply goes higher, and they never get in.
The problem with this traditional investment wisdom is you end up trying to pick market bottoms, and try to get in on pullbacks, but when a market trades higher quickly, you miss the move.
This sees traders lose on trying to pick bottomsthey don't make the profits they could have made from the big moves.
Breakout Systems are the Best for Catching the Big Profits
A breakout system does not try to predict a market bottom - it waits for CONFIRMATION.
It will wait for a market to break above a recent high, (resistance) or break below a market low, (support) if these levels are broken, a move will start, and astute traders ONLY trade the break - they don't try to predict.
You can make big profits on these breaks - look at any currency you like: Japanese yen, Swiss Franc, British Pound, etc. and you will see huge moves from breakouts.
The Best Risk Reward
The breakout point provides the best risk to reward, to enter the trade.
Why? Lets take a hypothetical example:
The British Pound has traded up and tested resistance at 1.85 several times, and is currently trading at 1.70. The market rapidly trades up to 1.85, and immediately breaks to the upside, and quickly goes to 1.95
What has Actually Happened?
When the critical 1.85 area gives way, traders with stops on their short positions, start to cover, and new traders enter the long side of the trade. This causes a huge surge in price - as the area of resistance is so important.
If you are positioned to get in as the breakout occurs, your risk is low, and reward high.
Many traders don't want to do this - they feel they are 'chasing' the move, and want a pullback - it never comes, and they miss the big profits.
Keep in mind the old saying:
'A trend in motion is more likely to continue than reverse'
Check Your Charts
Most of the big currency moves in history have started with breakouts on the chart, then a huge quick move to the upside - with no PULLBACK
Big Currency Trading Profits can be yours!
Here we have looked at the concept, and why it's successful, and you can see how uncomfortable it is to do - and that's exactly the reason it's so profitable!
Breakout Trading is Simple
All you need to use to trade breakouts, are traditional charts - and have some confirmation signals, to help you filter 'true' from 'false' breakouts - such indicators as RSI and Bollinger bands, are examples.
Astute traders are making huge profits every day from this simple method and you can too. |
| Author: Steve Todd |
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Author Bio:
Most traders like the concept of FOREX currency trading systems, but like to have some input to customize the system to their specific personality. If the system offers some human input, it is easier to implement the trading system with rigid discipline - which is the key to building consistent profits. New! A valuable FREE Currency Trader CD containing 9 critical trading reports, tips, strategies and currency trading info. Visit our web site now and grab your CD www.tradercurrencies.com |
| This article can be searched using: forex market, foreign exchange rates, forex online, forex training, online forex trading, forex news |
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