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Saturday, July 17, 2010

Forex Trading Method - A Simple Strategy to Catch ALL the Big Trends and Big Profits

If you want to trade Forex you need a proven strategy that works and this Forex trading method works, catches all the big trends and can be learned by anyone - let's take a look at it in more detail.

Lets look at the timeless logic this system is based on and ask yourself this question - how does every big bullish trend in Forex start and continue?

The answer is - by breaking to new chart highs; if you look at any currency pair you will see this and this leads to an obvious conclusion - if you want to get in on all the best trends and profits, trade breakouts.
It's an obvious way to make money but most novice traders simply don't use this method.

The reason they don't is - they think they can predict highs and lows and they will not buy a trend once it's in motion. They see the breakout come and deep down know the market has turned but they want to get into the trend on their terms and that means, they want a dip back to the breakout point so they can get in right at the start of the trend. The problem for them is the market doesn't come back and a great opportunity is missed.

Of course one of the well known rules of trading is -A Trend in motion is more likely to continue than reverse and this statement is even more valid, when a trend starts strongly, after a breakout.

Most traders never learn this but if you do and you ignore the little bit of the trend you have missed and instead, focus on the profit ahead of you, then big Forex profits can be made.

You can put together a simple breakout strategy easily - all you need to do is watch resistance levels and have a few indicators to give you a gauge of price velocity and strength and you have an easy to understand method you can apply for currency trading success.

In part 2 of this article, we will look at how to spot the best high odds breakout patterns to increase your chances of success even more. Always remember what the savvy pros do there is more money to be made by buying "high and selling higher" than by, "buying low and selling high" and the reason is - the former statment is a way of putting the odds on your side, while the latter statement, involves prediction which is hoping or guessing and leads to losses.




SOURCE:http://ezinearticles.com/?Forex-Trading-Method---A-Simple-Strategy-to-Catch-ALL-the-Big-Trends-and-Big-Profits!&id=3665404

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