If you want to make money in forex trading you need to have a soundly based forex trading strategy. This is far easier to achieve than many traders think it is and here we will show you how to build one in 4 simple steps.

1. Success Comes From Inner Understanding

To succeed at forex trading you need to do it on your own and understand EXACTLY how and why your system works.

Even if you follow a vendor or someone else’s currency trading system, you can’t simply follow it you must learn it and have confidence in it.

If you don’t understand how your trading system will help you succeed, you won’t have confidence in it which will lead to a break down of discipline if you hit a losing period.

Keep in mind if you don’t have the discipline to follow your trading method, you don’t have a method!

2. Keep It Simple & Work Smart

Many traders believe the more effort they put into their forex trading strategy the more they will make – this is not true. You get rewarded for being right with your trading signal and that’s it.

Other traders think the more complicated their system is the more chance it has of succeeding but again – this is not true.

All the best forex trading systems are simple and this means they have fewer elements to break and are more robust in the face of brutal market conditions.

This is actually good news, as you need to work smart and not hard to succeed.

Simply focus on the right areas and learn them. If you do this, it will lead you to currency trading success.

3. A Successful Trading System

Here we can’t give you all that goes into a successful trading system – but we will give you some important basic elements you need to keep in mind when building one.

- Do not day trade, as you are guaranteed to lose. All short term volatility is random and you cannot get the odds on your side, either swing trade or follow long term trends.

- Base your system on the concept of support and resistance and breakout methodology.

- Do not predict with your system. Use momentum oscillators to confirm each and every trading signal.

If you predict that’s simply hoping or guessing and you won’t win.

Trade the truth of price action and confirm.

- Always place stops and assume the worst eventuality – you need to protect what you have above all else. As one trader I once knew said:

“If you take care of the losses the profits will look after themselves”.

4. The crucial Point You Need to Understand!

In forex trading 95% of traders lose.

This is simply in most instances down to the fact they don’t work smart and learn the right information.

They therefore don’t have confidence to apply their system with discipline.

You need to understand as part of your forex education that your method is important – but you need the right mindset to apply it.

If you want to learn currency trading you can, in fact anyone can – but you must learn how to trade currencies the right way and build a logical, simple forex trading strategy which, takes into account all the points we have made above.

If you want to trade forex you need a forex trading strategy, which will allow you to enter the elite 5% of traders who make money and avoid the 95% who lose all their money. Let’s look at a forex trading strategy for success.

1. Basics

Many people think they can buy success from a vendor on the net but you can’t – most of the advice sold is junk and you can get better info for free. Any one who promises to give you success for a few hundred bucks is lying – success comes from within only you will make yourself rich, no one else your on your own.

Educate yourself from the great free resources on the net as the basis of your forex trading strategy. Use a technical approach it’s far easier than fundamental analysis. The latter, will get your emotions involved and with news instantly discounted, its impossible to trade it so don’t try. (more…)

The currency trading strategy enclosed is the one the savvy professional traders use to make big gains but very few novice traders use it but don’t let that worry you, most novice traders lose their money. Let’s take a look at the strategy in more detail.

Most novice traders think the way to make money in currency trading is to try and buy low and sell high and they therefore want to predict highs and lows. The problem of course is, prediction is just another word for guessing and that soon sees these traders lose money.

The savvy trader knows he must hit high odds chart set ups and have confirmation of a trend change so he does the following – he buy breakouts to new highs in a currency and this puts the odds firmly in his favor. If you look at a Forex chart, EVERY big bullish trend starts by breaking to new highs and the trend continues in this way as it progresses.

Its a logical and sensible way to make money and means you don’t have to predict anything and the risk reward is also excellent as your stop is close and obvious, just below the level which has broken and if the trend is a good ones you could be in for weeks or months of profit.

When trading breakouts you need 2 tests or more but personally, I never trade less than six tests, because the more times a level is tested before it breaks, the more important it is in trader psychology. So when it does break, the odds of a continuation are higher because stops are hit and technical buying kicks in.

Breakout trading works, because markets trend and once a trend is confirmed by a good breakout, a trend is more likely to continue than reverse.

Many of the top traders in the world use breakout methodology and if you use it too, you can get the odds on your side and make huge gains in around 30 minutes a day; buying high and selling higher is much better way to trade than, trying to buy low and sell high which is just guessing so get the odds on your side and big profit potential by incorporating it in your currency trading strategy.

By: Samuel Leslie Berkovits