subject: A Fool Proof Forex Strategy [print this page] A Fool Proof Forex Strategy A Fool Proof Forex Strategy
I want to make it quite clear from the offset that this article is not a complete guide to trading forex it is simply a way of maximising your profit and limiting your losses in a beginner's environment. Let us assume that you have some knowledge of using forex charts and spread betting platforms, I am 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.
We know that when a currency starts to trend it moves in waves, for example, if the currency is trending in a bullish direction it will tend to move up in direction to a certain point then reverse back before breaking through its high point again with yet a further advance. It is these break through points in which you will find this strategy most useful.
In this forex strategy I am going to suggest that the GBP/USD has just broken through some resistance to make a new high of the day. It is at this point that you would enter the trade, an upward push is inevitable for probably 10 pips or so. Your target should be set for such a surge or until the GBP/USD starts to lose momentum on its surge.
At the point of reaching your target 80% of your profit should be taken out of that trade leaving 20% still running. At the same point adjust your stop loss up to your entry point, this way if the trade reverses back, you will not lose any money and you will still have taken 80% of your profits from this forex strategy.
If you traded this strategy at 10 per pip your initial profit would be 80 and if the 2 a pip you leave running does not reverse back you could stand to make huge profits from a long term trend at no risk. After this forex strategy being tried and tested many times you will find it to be profitable in the long term and see some fantastic long term trades.
