If you want a Forex trading strategy that works, is simple to understand and make money with you will find two enclosed which you can soon enjoy currency trading success with…

You have a choice in terms of time frames you can trade in, you can either swing trade ( a few days to around a week) or long term trend follow for weeks or months.

Do NOT bother trying Forex day trading or scalping it doesn’t work, as all volatility is random. There are lots of systems sold saying it does - but there all simulated backwards on paper and have no chance of making real money.

Right lets look at our two forex trading strategies for profit.

Breakout Long Term Trend Following

This method makes really big gains because all big trends start and continue from new market highs or lows. By buy buying or selling these breaks, you have the odds on your side and most big trends last for weeks or months so profits can be huge. Most traders can’t do it though!

Why?

Because they think they have missed a bit of the move and wait for the pullback - but prices don’t pull back on good breaks, they sail over the horizon and the trader waiting for the pull back, laments on what might have been.

If you are selective with breakout trading you can make big gains. I know traders who trade less once a month and in 30 minutes a day, they compound triple digit gains!

Forex Swing Trading - Taking Advantage of Overbought and Oversold

Forex swing trading suits the trader who likes more action and profits and losses come quickly and there are plenty of opportunities. Within any major trend prices hit over bought and oversold levels and you sell and buy into these areas and make profits.

Swing trading is a great way to make money and keep risk low, because humans always push prices to far in either direction and these spikes can be traded for profit.

Whichever method you choose, keep this in mind - don’t predict!

Wait to trade the confirmation of price change on the chart and use some momentum indicators to confirm your trade, that way you will have the odds on your side and a greater chance of success.

Either methodology will work, you can learn to do either in a couple of weeks and remember - you should always keep your Forex trading strategy simple, add to many indicators or make it to complicated and it will have to many elements to break, Forex trading is simple so keep it that way.

So pick the method that suits you, get the right Forex education and in a few weeks, you could be trading with confidence and enjoying Forex trading success.

Kelly Price
http://www.articlesbase.com/currency-trading-articles/forex-trading-strategy-two-strategies-all-novices-should-consider-for-big-gains-690351.html

Filed under: forex strategies

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