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

Of you are looking for Forex trading strategies for success, then the one enclosed is one that most traders ignore, despite the fact it works and many of the world’s top traders use it – let’s look at it in detail and see how it can lead you to Forex trading success.

The strategy is based upon simple facts about Forex price movement which are…

Currency markets trend and move in a sustained direction for long periods and these big trends can make you a lot of money, if you trade them with leverage on your side. So how do you get in on these trends? The answer is simple and a close look at any currency pair, will show you how a bullish currency trend starts and continues…

They break new chart highs so, if you focus on getting into the big trends, via breakouts and holding them, you can make a lot of money. While this sounds a simple, the losing majority of traders, simply cannot trade these breaks.

In their mind, they feel they have missed the start of the move and want to wait for a dip back to the breakout point this logic is wrong!

If you look at the best breakouts they don’t come back, they carry and the trader who waits for the dip back misses a great trading opportunity.

Of course, not every break to new chart highs continues, so you have to look to trade levels which have been tested a few times before the breakout occurs, by a few, I mean at least six or more.

These levels will be considered important by the market and when they break, the supply and demand situation will have changed and the odds of a continuation of the break are good.

You will get a few good breakouts each month and there enough to make you a lot of money if you get into them and hold them.

Breakout trading works and many of the top traders use this method and while it appears you have missed the start of the trend ( which of course you have) you can’t predict that anyway, so simply, focus on how much profit will be ahead of you as the trend develops!

Breakout trading, is ignored by most traders but its a proven way to make huge profits, so try it and you will have one of the best Forex trading strategies for success and be in the company of some of the world’s best traders who use this method to enjoy Forex success.

By: Kelly Price