Successful Forex Trading System - This Method is Simple and Makes Huge Profits

If you want a successful Forex Trading system then you should use a breakout strategy, as its simple to understand, easy to apply and makes huge gains. Let's look at how to incorporate it in your Forex trading strategy for huge gains...

You don't need a forex robot to do this you can build a system yourself and here we will show you how.

What are Breakouts?

Breakouts are when prices break to new highs or lows on a Forex chart.

If you buy or sell these breakouts you can make huge profits - because they are based on two facts about Forex Price movement which will never change:

1. Forex markets trend for long periods and most trends start and continue from new market highs or lows.

2. The majority of Forex traders lose, because they refuse to buy or sell breaks and want to get in at a better or lower price and the fact they don't want to go with breakouts, means they work remember 95% of traders lose!

A valid breakout has high odds that it will continue in the direction of a break.

Of course not all breakouts continue so you need to be selective in the ones you choose and here are two ways to find the best breakouts.

1. Generally you're looking for a minimum of 2 tests of support or resistance but we like 4 or 5 tests. We also like them in time periods that widely spaced apart in terms of time as well. As a general rule of thumb - The more tests the better and the wider and more time frames they occur in the better.

2. Look in the news for levels the participants feel are important and the news tells you they are strong when they break they are likely to be good breakouts. The more uncomfortable you are when a breakout occurs the better it is likely to be, never worry if the majority don't think a break will continue - the majority lose!

Getting the Odds in Your Favour

The best breaks are always supported by rising price momentum so use one or two indicators to confirm the move.

Two good ones are the RSI and Stochastic which you can learn in about an hour.

These are visual indicators easy to apply and use and can help you make bigger profits, as they help you get the odds on your side more.

We don't have time to give you all the advantages here but look them up in our other writings.

Place Stop and Ride the Trend

Once the breakout occurs supported by price momentum, you can execute your trading signal and put your stop under the breakout point and you're in the trade.

When the breakout gets on the move, trail your stop slowly outside of normal volatility - never jack it up to close to quickly keep it back and you will stay in the trend longer and make more profits - sure you have to take open equity dips but if it is a good trend you will be rewarded at the end of the trade.

A Forex Trading Strategy to make Big Gains

Good breakouts come around a few times each month at max in currencies and this form of trading is not for the action trader but the one who wants to make big gains in 30 minutes a day or less.

Discover breakout trading and make it part of your essential forex education and you can make triple digit profits annually with your Forex trading system.