Currency Trading Strategy - A Simple One Anyone Can Learn For Bigger Profits

Enclosed we are going to outline a simple currency trading strategy that is simple to understand and works and can make you big profits in just 30 minutes per day. Let's look at it.

This method doesn't mean you have to predict where prices may go which is of course hoping and guessing (which most traders do and lose) it simply requires that you trade price change as it occurs. If you look at any currency chart you will notice two constant facts:

1. Currencies trend for long periods of time which can be trends which last for months or years.

2. All of these big currency trends start and continue from, breakouts to new highs and lows.

The way to make money is simple - as soon as prices break an important level pf support or resistance, you simply buy or sell the break.

So what is an important level?

An important level is one which has been tested a few times and is seen as important by Forex traders.

As a general rule, the more tests the level has had the more important it is when it finally breaks and we normally look for 5 or 6 tests, in time frames that are spaced widely apart.

When the level breaks, stops are clustered behind the level and are covered; this pushes the price further in favour of the break. Technical computer programs then kick in from big funds and push the trend even further away from the breakout point and then a herd of speculators come in and take positions.

Most traders hate trading breakouts, because they want to be exact with their market timing and think they have missed some of the trend (which of course they have) so they wait to get in, at what they consider is a "better" price and they wait and miss the move.

The trader, who went with the break, knows that buying a market bottom or selling a market top is impossible. They are aware they have missed a bit of the move but they also know that chances are, there is plenty more profit to come and they make some tidy gains.

It sounds simple to do and it is. It's obvious why breakout trading works and that's because markets always trend and that won't be changing as long as we have free markets.

Money management is easy enough, just put stop loss protection behind the breakout point then, wait until the trend moves in your favour and move the stop to breakeven to create a risk free trade.

A currency trading strategy based on breakouts, can be done just by looking at chart levels but you can add in some indicators in to filter the trades and to see if price momentum is accelerating as they breakout occurs which improves the odds of success even more.

If you want to trade breakouts, each currency pair will give you one or two good breakouts per month which have triple digit profit potential. With a little practice you could soon be trading these breaks for huge gains and enjoying currency trading success in just 30 minutes a day or less.

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