Forex Trading System – A Simple System You Can Use For Bigger Forex Profits

Posted on July 12, 2009
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The Forex trading system enclosed is simple to understand learn and apply but I know many traders who make triple digit annual profits with it and you can too – lets take a look at it.

In years gone by I was one of the traders who always tried to buy low and sell high and predict the market and you guessed it, I lost. Then I read a story that changed my way of trading, its the famous one about the “turtle traders” who were trained by Richard Dennis. For those not familiar with the story, here it is:

Richard Dennis set out to prove that anyone could learn to trade, so he taught some people from all walks of life, to trade in just two weeks and they then went onto make hundreds of millions of dollars. He had shown anyone could learn to trade with the right system and now, we will look at the methodology they used.

What struck me was how simple the system was.

It was a simple long term trend following strategy and as trends last a long time, it seemed logical but instead of predicting prices in advance and buying low and selling high, these traders simply bought breakouts to new highs and worked on the concept of buy high sell higher to make a profit.

If you look at a chart any currency in a bull trend, it will start it's trend from a breakout and continue breaking to new highs as the trend develops.

I like most traders didn't do this – why?

Well if you think about it, when a breakout occurs you have missed a bit of the move, so you wait, as you want to get in at a better entry point which is lower – but the fact is breakouts don't pull back, they carry on and you can see this on any Forex chart.

So you can make money by trading strong areas of resistance that break and while the turtle experiment, was over 25 years ago, you can still see this strategy work today and it will always work as currencies trend.

Breakout trading doesn't need to be complicated, its very simple. All you need are just bar charts to spot levels that could break and a few confirming indicators to confirm your move , when they do and your all set. Stop losses, are always put behind the breakout point making this a very low risk form of trading and best of all:

You don't predict anything! You wait for the break and go with it and yes, you do miss the start of the move but with the potential for lots of profit ahead of you, you can look forward to a big, banked profit, at the end of a big trend.

Breakout trading is simple and all the best Forex trading systems are but you know most traders don't have the mindset to do it (and comfort yourself with the fact that most traders lose) and you know it will continue to work.

If you want a simple, logical and easy to understand, Forex trading system that works and will always work. Base your trading on trading breaks of strong resistance and you could be making some great Forex profits, in around 30 minutes a day.

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