Many new forex traders think the core of a forex trading strategy should be predicting where forex prices will go. Try it and you will lose, you will win if you trade in a different way so why is prediction not the way to make money? Let’s find out. If you are predicting you are in effect hoping or guessing which is not a way to make money in any venture let alone forex trading. You cannot predict the future and if you try, your predictions will be as accurate as your horoscope.

There is however a big market in people who say they can predict and many theories that say you can such as Elliot wave, Fibonacci and Gann. They argue that as human nature is constant so the markets must be as well. However if you think about it this logic is obviously not true, because if markets were predictable with science, we would all know the answer in advance and there would be no market.

Markets move based upon uncertainty and while human nature is constant, it is not predictable with science – trading is a game of odds not certainties. If you want to win you trade the reality of price change and don’t try and guess in advance.

For example if you see a market testing a level of resistance you do not simply enter a trading signal – if you do you are trading against the trend and you could be wrong. Instead you wait for prices to test resistance and wait for prices to turn back the other way. Sure you miss the turn – but you couldn’t predict that anyway, so there is no point trying!

How do you know when to trade.

The secret of correct market timing is using momentum oscillators. There are many you can use and three of the best are: RSI, ADX and the stochastic indicator. We don’t have time to go through exactly how they work here simply look at our other articles and make them part of your essential forex education.

The key advantage they give you with your forex trading strategy is they allow you to gauge shifts in price momentum. You can use these shifts, to allow you to trade the reality of a price change to achieve better market timing and more forex profits.

The forex traders who rely on prediction lose and are generally naïve or greedy traders who think forex trading is simply a walk in the park – its not and neither would you expect it to be. The real pro forex traders don’t rely on hope or guessing or attempting to buy market tops or bottoms they look at and trade the reality of price change.

The way to succeed in forex is simply to look at support or resistance and time your entry on shifts in momentum and you should not just do this with a view to these levels holding.
You also need to buy or sell breakouts of new market highs or lows. It’s a fact that most markets develop their best trends from these highs and lows and you need to learn to go with them and enter the market.

It may look like your getting in at good levels and its tempting to wait for the pullback – but these moves tend to not pull back and accelerate and offer the biggest profit potential. The market price is the right place and if you cut out prediction and trade the reality, you can have the basis of a forex trading strategy that can make big consistent profits.

By: Monica Hendrix

The Forex trading strategy enclosed, is one that is proven to make money and many of the world’s top traders use it yet, very few new traders consider it but that’s of no real worry the bulk of novice traders lose money. Let’s look at this simple Forex trading strategy for success.

One of the most obvious things you will see, when studying Forex charts is that, Forex prices trend for many weeks or months, in a sustained direction. If you can lock into these trends and hold them, you can make huge gains but you need to know how they begin and continue to do this. A close look at any currency pair will reveal how they start and continue which is the basis of this strategy:

All big trends start and continue by breaking to new market highs – so if you buy these breakouts, you have high odds of success and can make a lot of money – Simple? Yes it is, so why do most novice traders ignore this way of trading?

The problem they have is mindset, when they see the break occur, they think prices are going higher but think “I better wait for a pullback so I can get in at a “better price” this of course is a huge mistake!

When the best breakouts occur, they don’t pullback and the novice trader watches as the price carries on making thousands of dollars and he’s simply not in it. These traders want to buy the low but this is impossible and they simply cannot buy a trend in motion but this is the way to make money in Forex trading, as the odds of a continuation in favor of the break are so high.

Forex breakout trading, is easy, all you need to watch for are levels of resistance which have been tested a few times ( the more times the better) and when the level eventually gives way you get on board.

Your stop is obvious and tight, just below the breakout level, giving you low risk and then you wait for the trend to unfold and hold it. To do breakout trading you just need to watch support and resistance and use a couple of momentum indicators, to time your move and you have a simple Forex trading strategy, for triple digit profits.

So learn the strategy the millionaire traders use – trade breakouts and get on the road to a great second income in 30 minutes a day, its easy to learn and is a strategy which will always work.

By: Kelly Price