Most novice traders like to try and make small profits and end up day trading or scalping but if you want to make bigger overall profits with less effort you should consider Forex trend following as the basis of your strategy. Let’s look at how to do it correctly.
Look at any Forex chart you like and you will always see big trend which go on for week or many months and if you can lock into these trends, you can make a lot of money – so how do you enter these big trends?
The way to get in on any bullish trend, is to buy breakouts of important levels of resistance and if you look at any currency chart, you will see the big trends start and continue, by breaking to new highs. Most traders like to predict where prices may go but that’s hoping or guessing, however trading breakouts is trading the reality of price change which puts the odds on your side.
When looking for important resistance levels start with the weekly chart and then move to the daily chart and try and find price areas of resistance that line up on both. In addition, the more tests there are before the break occurs the better and we normally look for a minimum of four tests. When you have found a level, wait for it to break and put your stop behind the level which has just given way, this will give you low risk and then wait for the move to continue upwards.
The key to making money in trend following is to stay with the trend, so don’t make the mistake which most traders do which is to move your stop to quickly – hold it back outside of random volatility. You have to accept dips into your open equity, if you want to hold long term but don’t worry about them, focus on the long term profits!
Each month you will get a few good breakouts and these have the potential to make you a triple digit income in around 30 minutes a day.
The Forex trend follower isn’t concerned with the amount of trades he makes just the profit he makes per trade and in trend following many trades can make a 1,000% or more with leverage.
If you are looking for a timeless highly profitable way to make money, discover Forex Trend following and you will glad you did