Forex Trading Method

Most Forex traders, think the best way to make money is to predict and catch short term moves and they end up making a lot of effort but their taking low odds trades and lose. The best way to make money in Forex is to catch and hold the long term trends which last for many weeks, months or years. The Forex trading method enclosed, will help you make more money with less effort - lets take a look at it.

Currencies trend long term, because they reflect the underlying economic cycle and these last a long time - so you want to get in on these big trends and predict when they might start? That's a fatal error prediction, is no more than hoping or guessing and will see you lose - no one can predict the future so don't bother trying trade the reality of price change instead.

Getting into the BIG Trends

All big bullish trends start and continue, from breakouts to new market highs and as the trend unfolds and progresses, the currency continues to smash through overhead resistance and you can see this on any currency trading chart. All you need to do is buy high odds breakouts and your in the trend and can follow it for big profits.

The Problem with Long Term Trend Following

Now that sounds simple enough but within any big trend, you will have pull backs that eat into your open equity. When this occurs most traders lack discipline and grab a profit before it gets away, so they exit the market and then, watch as the trend makes several thousand dollars and their not in!

Making Bigger Profits from the Trend

To get around this problem, you should swing trade within the trend. Hold a core position in the trend and then have an active position. As the currency moves to overbought levels, you take profit and then, wait for a dip to get back in the market.

If you do this correctly, you will be banking profits all the time and this will cushion your account for when the trend actually turns and you give back profit on the turn. You are holding the big trends but being active within it makes it easier to hold onto.

Final Words

A Forex strategy to do this can be very simple - all you need to do is spot high odds chart formations and use a few indicators to judge over bought and oversold levels and your all set to make some great Forex profits.