Fool Proof Forex Trading Strategies
Basic Trading Strategy
Before I start, let me clarify that this is not a complete guide to forex trading, but an accommodation as a guide to maximising your profits and reducing your losses as a beginner. What we provide here is a simple yet effective strategy of forex trading with limited intelligence.
Let us guess that you have some intelligence of using forex charts and spread betting platforms, We’re going to show you a forex strategy that will enable you to be in a trade with complete safety and no chance of losing money after the initial entry point. Encounter verbalize us that when a currency trades, the trend will move in waves; if its trading well then it will move up to a point, slide down just a bit, before moving up again through the previous high point and breaking with a further advance. These break through points are the key to making this strategy work.
As an example, let us suggest that the GBP/USD has encountered some resistance and pushed through to reach a new high of the day. It is at this point, that you ought to enter the trade, as it is inevitable that there will be an upward push of 10 pips or so. Your target ought to be set for such a surge or at least until the momentum on the trade begins to lose. When you reach your target, take out 80% of your profit of that trade and leave 20% still running. You ought to as well adjust your stop loss up to your entry point. This will ensure that even if the trade loses back, you will not drop any money and you will at a minimum have 80% of your profits from using this forex trading strategy.
Say you traded on this strategy at 10 per pip. The initial profit you made would be 80 and providing the 2 a pip that is left running doesn’t lose back, you could potentially make a large profit from the long term trend at no risk. After this forex strategy being tested and tried a myriad of times you will find it to be profitable in the long term and see some fantastic long term trades. The key is to aim for those initial 10 pips and not get greedy.