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95% of all Forex traders lose money and only 5% win and a huge amount of these winners use the Forex trading system enclosed. Not many novice traders consider this method of trading but don't let that bother you - most novice traders lose. Lets look at the Forex trading method the pro's use in more detail. A quick look at any currency will show you that all trends start and continue in the same way, the price breaks through resistance and makes a new high. As a trend matures it continues to do this - so a great way to make money is to buy these high odds breakouts. Before we look at a Forex trading strategy to help you do, lets see why novice traders fail to use this method, even though it makes huge profits. The novice trader believes the common myth that you can forecast prices in advance so of course he wants to buy the exact low of the market and sell at the high. The problem of course is - Forex markets are not predictable and this is impossible but he tries and losses. When the losing trader sees a breakout, he is not interested in getting in on the trend because he wants to wait for prices to come back down, so he can get in at the exact turn! In most instances the price of course doesn't pull back and is left looking at trend which goes on to make huge profits and he's missed the opportunity to be in on a great trend. We all want to be perfect and catch the exact turn of the market but its simply not possible so there is no point in trying. The pro trader of course knows this and focuses on trading the odds. Breakouts put the odds on his side and he keeps an eye on the profit ahead of him - NOT the little bit he has missed. So which breakouts should you buy? The best breakouts to buy are ones which have been tested resistance several times before the breakout occurs. The odds of success are higher, if the breakout occurs when, the majority of traders are positioned the opposite way to the direction of the break and in addition, the news supports their view. If you feel everyone is against you when you enter a breakout don't feel nervous, just keep in mind the majority of traders always lose money. As soon as the break occurs, stops are hit propelling the price away from the breakout point and then technical big boy funds come in and push the price further again. Be selective in the breakouts you choose to trade and look for several tests before the break and I find six is a good number, with at least two of these tests several months apart. I know traders who trade a few times a month and make huge gains with this method. If you want to make money in Forex trading, trading breakouts and you will be on the road to Forex trading success. NEW! 2 X FREE ESSENTIAL TRADER PDFS
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