0 Forex Trading - A Simple Method That Makes Huge Gains

If you are just starting out in Forex then if you base your Forex trading strategy on the following method, you will have a simple to understand methodology that works and will make big consistent gains...
The methodology is simple - buy breaks to new chart highs and lows and it works.
Why?
Because all major Forex trends start and continue from new market highs or lows and as Forex markets trend long term, these breakouts can get you in and keep you in all the big moves.
Of course most traders won't buy or sell breakouts.
They always want to get in at a better price and wait for a retracment but breakouts of significant support and resistance don't come back, they sail on over the horizon. What these traders don't realize is you have to miss a bit at the start as the breakout is confirmed but that doesn't matter!
There is plenty more to come in terms of profit and you should not try and be perfect with your market timing, you should aim to make money and get the odds on your side and that's what breakout trading does.
So how do you spot a good breakout?
Of course not all breakouts are equal and the key is to look for valid support and resistance and levels the market feels are important and you should do this on a daily chart many try it on short term intra day charts and the levels are not valid so it's the daily chart and you want:
2 X tests of a level is the minimum but the more the better and the wider they are spaced apart the better. You looking for the areas the market participants will see as important and the more times its tested the more they will!
Trading Them
Simply wait for the level to break and then confirm the move, with some momentum indicators. These will give you an indication of whether momentum is turning up on the break and two good ones are - the RSI and Stochastic. There easy to use and give you at a glance, how strong momentum is; there quick and easy to learn so look them up and use them to confirm your moves.
Stops
Once you are in the market, your stop goes below the breakout point, the key now is to hold the stop back and trail it slowly.
Don't move it too quickly so you get taken out by random volatility. Allow the market to breathe and accept drawdown in open equity and keep your eyes on the longer term.
Simple and Effective
Anyone can do breakout trading and win and I know traders who only trade a few times a month at most yet, make triple digit profits in 30 minutes a day and you can too. Learn to trade breakouts and you will have a timeless way of making money and enjoy currency trading success.
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Article Source: http://EzineArticles.com/?expert=Kelly_Price

0 Forex Trading Money Management - The Risks of Forex Trading and Why 95% of Traders Lose

Forex trading is risky and most traders simply can't deal with the high risk that it presents. If you do then you can enter the elite minority of winners. Let's look at some tips to manage risk...
Here they are in no particular order of importance there all important and will help you with your Forex trading Money Management!
Leverage
Today you can 400:1 leverage or more and most trader's use as much as they can and get blown out the water. For a novice trader 10 - 20: 1 is plenty. Don't over leverage or you will lose.
Every Trade Puts Your Money at Risk
There is no such thing as one trading opportunity being better than another they all put your money at risk and the fact is the more sure fire a trade looks the more likely it is to lose money. It's generally the most uncomfortable trades that are the best. Always expect the worst and things can only get better.
Never Place Stops in Random volatility
Day traders and scalpers do this and lose. You may think you have low risk by having a tight stop but if its to close and your 100% guaranteed to get stopped out and that means a lose of your account equity to zero.
Risk has got nothing to do with your stop minus your target - that's an opinion! Risk is related to probability and it's a fact if you place stops outside of random volatility you have better odds of success.
In Forex trading you need to take calculated risks to make money. If you think you can trade with low risk and no drawdown, go and put your money on deposit - Forex trading is a big boy's game.
Have the Courage to Accept Big Gains
It may sound odd, as we all want big gains but most people don't have the courage to accept them. Why?
Because as soon as an open profit starts to get big, the trader wants to lock it in, before it gets away and puts his stop to close to lock it in and he does lock in a profit a minor one! He gets stopped out by normal volatility and then sees the trend continue and make thousands of dollars and he's not in!
Have the courage to accept big gains and hold your stop back behind normal volatility and accept drawdown and open profit and keep your eyes on the bigger price at the end of the move. Sure, you give a bit back but you get more of the trend, if you don't jack your stop up to close. Forex trading is about making money not perfection!
Putting it all Together.
You have to take risks - but you don't want to lose too much or get too far behind. It's a delicate balance and Forex money management needs to be taken seriously, its not an after thought, it's the basic foundation of long term currency trading success, so make it part of your essential Forex education.
NEW! 2 X FREE ESSENTIAL TRADER PDFSESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's, with 50 of pages of essential info and a PROVEN Forex Trading System visit our website at: http://www.learncurrencytradingonline.com.
Article Source: http://EzineArticles.com/?expert=Kelly_Price


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