Currency trading can be easy yet, people are always trying to make it complicated and to prove the point, I am going to give you a system you can use right now for huge gains. The system is easy to learn and understand and very profitable, let’s take a look at it.
Were not going to use any indicators and were not going to try and predict in advance, we are going to use price action to tell us when to get in the market with our trading signal and to set our stop.
This system is based on the fact that all big bullish currency trending moves start in the same way and that’s by breaking out to a new market high. You can observe this on any currency trading chart and see for yourself and if you look closely, you will also see the trend continues in exactly the same way – smashing through resistance to new highs so were going to trade breakouts.
We need to set some rules for our currency trading made easy strategy so here they are:
Rule 1: Number of Tests and Time Between Them
We don’t want to trade just a few tests before the break we want to trade at least six and in this strategy its more is better. In addition, tests that are close together in terms of time are not as good as tests that are wider apart; look for some of the tests to be two to three months apart.
Rule 3: The More Uncomfortable the Trade Feels the Bigger the Profit
If most traders expect a breakout coming and the media are taking about it, the odds of it being a good one lower, than if no one expects it and you feel uncomfortable entering This can be explained by the Heisenberg principle in physics:
“if something is closely observed, the odds are it is going bitcoinofamerica.org to be altered in the process”
Basically, the more uncomfortable you feel going into the trade and going against the majority opinion, the better and if you think about it this is true – because the bulk of traders lose money, so standing against them is no bad thing!
Trade Cross Rates
the crosses have far less interest in them and speculative interest is far lower and this leads on from the above point, in that the less interest in a currency pair the better – so focus on the crosses as well as the majors and they will give you some great breakouts and profits.
Your stop goes behind the level of resistance which has just broken and it will normally be between 30 – 100 pips. The upside on the best breaks can by several hundred or a thousand or more so you can win just 30 – 50% of the time and still make huge gains. Don’t focus on the amount of trades you get right, focus on the difference between your average winning and losing trade.