The Best Forex Trading Strategy For Big Earnings

How do Forex prices go? If you look at any diagram, you will see they tendency for long periods in a constant way and these trends can last for weeks, months and in some instances, years.

You can notice this on any currency chart but you have to get into these trends and if you take a look at any currency charts closely, you will see that every main trend in any optimistic currency, starts from a breakout to new highs and continues breaking new highs, as the trend advances.

We will look at how to mark the best breakouts in a moment but lets stress a point which is significant - despite this being a reasonable and clear way to make money, most traders plainly don't buy breakouts.

Nearly all traders simply can't buy breakouts because they desire to get in right at the bottom of the tendency and they expect which is another word for hoping and guessing and lose. They won't buy breakouts, because they sense they haven't got the precise bottom and want to wait for a shrink - this never occurs on the best breakouts and the trend carries on, away from the breakout point.

Not all breakouts make money, so you need to be choosy in the breaks you buy. Look for a number of tests to happen before the break occurs and we very often look for double figure tests before the breakout and view the least number as four tests. In breakout trading the more times a level has held before the break, the more likely the breakout when it comes, will be a good one.

This is a plain strategy and it works. You can use basic bar charts and just trade price action or you can add a few indicators in to verify your trading signal, if you desire and one or two to authenticate is fine.

Trading breakouts and holding long term trends, will take you about 30 minutes a day but the profits from your work can be enormous and offer you a great second or even life changing earnings.