The Forex trading method enclosed, is a simple one which anyone can understand and make money with yet, most Forex traders don't even consider it but many of the world's top traders do and you should too. Let's take a look at the method in more detail...
The method enclosed is based on a simple, timeless logic which means it will always work and it's based on catching Forex trends by buy buying breakouts to new market highs; all the big trends start by doing this and they continue to do it, as the trend matures - Simple?
Yes it is and in a moment, we will show you how to trade breakouts correctly but first, lets take a look at why most traders simply do not trade in this way.
The average losing Forex trader, wants to execute his trading signal at the exact low and predicts where this might be - but prediction is not the way to make money in Forex, because its simply guessing and these traders lose.
The savvy trader however, buys the break and knows the odds are on his side of the breakout continuing and he predicts nothing, he just trades the break as it occurs. The losing trader decides to wait, after all he can get in at a better price on a pullback - but his logic is wrong! The best breaks don't pull back, they keep on going and he misses the move, the savvy trader may not have got in at the exact bottom but he's smiling, as he is making a lot of money!
Buying breakouts, is all about buying breaks through levels which have been tested, numerous times in the past. The more times a level has been tested before the break the better it will tend to be in terms of the trend continuing and six to eight tests, should be a minimum if you want to look out for before, trading the break on the chart.
You can use simple price action with breakout trading and make money, without having to predict or guess, if you want to increase the odds of success even further, you can use some confirming momentum indicators to check price momentum before trading and we will show you how to do this, in the next article in this series.
So if you want to make money at Forex trading, incorporate breakout trading in your Forex strategy and you will be all set, to enjoy Forex trading success and a great second income.
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