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 1)  Read This First

 

 2)  Why SO IMPORTANT To Keep A Trading Journal ?

 

 3)  Why Are You Always Late & Wrong With Trend ?

      

 4)  When You STRUGGLE when Account Is Small ?

     

 5)  Is Using Stop-Loss Really Protecting Your Capital ?

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 6)  Be " Slightly More Patience Instead " & Win More !

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One Forex Trading Strategy Is All You Need To Make Consistent Profits Every Month…Here’s Why

Just One Forex Trading Strategy

Just One Forex Trading Strategy

Yes…….You’re hearing it right…

Not 3……not even 2…….but JUST ” One “ Forex Trading Strategy is all You need to make consistent profits every month trading forex.

Before I go into the main details on this….

Let me share with You a little interesting ” story “ that got me decide to write on this forex trading strategy…* smile *

Few weeks back, I actually attended a forex seminar ( free preview one in Singapore ) to support the speaker whom is one of my friend in the forex community.

On that eventful day…….sitting next to me was a lady and I must comment that she’s a rather ” friendly ” one…

During the 15 minutes break, she actually initiated and start chatting with me…( my wife was NOT with me for that seminar.*evil grin* )

She asked quite a few questions as she is still a newbie to forex and very curious…..*smile*

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The question that got me decide to share in this blog is this :

” Hey….since You are already trading full time now….

And I know there are tonnes of different strategies out there but……IF

I just need ONE forex trading strategy to profit consistently every month..

What should it be ? …

My Answer for this lady is… :

Of  Course !

In fact….You really don’t need too many forex trading strategies for your tading.

Sometimes too many choices can put You in an indecisive situation and simple don’t know which one to use..

All You need inYour basket is perhaps 1 – 3 proven trading strategies that have been proven to work and the success rate is at least 60%  ( regardless of market conditions..)

So to name one such forex trading strategy to share ….

I would say it is the ” breakout trading “

Reason being is that….it is really simple to anticipate a breakout ( normally it is after a tight range ) and You do not even need any complicated technical indicators for Your entry.

Combined with a good Reward/Risk ratio..

You would definitely be able to confidently capture those massive pips when the breakout happens…

—————————————————————————————————–

Having said that…..the 15 minutes break is roughly over…

So we just exchanged emails and correspond from there ( ONLY forex related topics ! nothing else….in case my wife reading about this! LOL)

…not to mention….I also told her about my forex trading empire blog too….* smile *

OK…..so much for that little story…

Let’s go into the main topic for this post….( I really want to avoid writing long winded forex article actually….You like it that way too right ? )

Having many ( 20 or more ? ) forex trading strategies in your arsenal might sound good….or sometimes impressive to some..

However….when the choices are just too many….it can backfire and causing You some unnecessary ” dilemma” and affect Your trading.

There is a period when I am personally experiencing this same ” indecisive-ness” too because I am one whom just love to learn and test out any new forex trading strategies I can lay my hands on..

The power of ” ONE ” is indeed powerful…

And that applies to forex trading as well…

Sticking to just ” ONE ” forex trading strategy that works and combined with good money management + reward/risk ratio can really increase Your trading efficiency ( as well as monthly PROFITS too ! )

One such strategy I always swear by ( even until now ) is trading the ” Breakout “..

And the beauty of trading a ” breakout ” is that You do not need any indicators or much analysis to profit from it

Oh ya……aiming for 100+ pips  profit or more trading a breakout is not only realistic….but also simple !

——————————————————————————————————–

Here’s why ( 3 Steps proven methods ) :

——————————————————————————————————–

1) You just need to know the certain condition which would trigger a breakout…

2) You need to know ” when ” to enter to capture those massive movements when it happens…

3) You need to know ” How ” to protect Your capital if it is just a FAKE breakout..

Follow on as I show You ( with illustrations ) how to properly execute these 3 proven steps to profit BIG TIME from breakout trading…

—————————————————————————————————————–

** 1st Step : You just need to know the certain condition which would trigger a breakout…

—————————————————————————————————————-

If You don’t know yet….

When the market is in a ” TIGHT Sideway Range ” for a while …You can then be ready to expect a breakout coming…

( the longer the duration of this range….the more EXPLOSIVE the breakout would be!)

Here’s an illustration on ” TIGHT Sideway Range of GBP/USD ” to help You understand better :

( click picture to enlarge if you want…)

Breakout Forex Trading Strategy

Breakout Forex Trading Strategy

The ” Tighter ” the sideway range is……

The more EXPLOSIVE the Breakout would be….

I am trading on the 1 Hour time-frame and the sideway range You see in the illustration has been stretching for more than 24 hours..

When the Price broke out from the tight range…..it climbs for about 250 Pips in just hours…

( See….! I told You it is simple to grab 100+ Pips or more trading the breakout ….*grin*)

Ok…..now You know the ” Certain Set-up” You need in order to anticipate a Breakout…

I shall show You ” When “ to enter into the market to capture those MASSIVE Pips when it happens…

————————————————————————————————————-

** 2nd Step : You need to know ” when ” to enter to capture those massive movements when it happens…

————————————————————————————————————-

Normally You would just follow in the direction of  the ” Previous ” trend…..

That’s because during a strong trend….the market would normally ” take a break ” or so called ” Consolidated In A TIGHT Range “…

And that’s where You get in !

Here’s an illustration to show You ” When “ to get in the simple way :

Forex Breakout Trading Strategy

Forex Breakout Trading Strategy

What You need to do is manually enter into the trend when the price broke out…

OR….

You can also use set a ” Pending Buy Stop ” ( maybe 15 pips interval ) order just above the recent Highest Resistance..

( If You do not want to sit glue to the PC to wait the market every minute that is…..)

In order to trade a Breakout ” Profitably ” each time…

You need to understand one important thing here…

And that is the Reward/Risk ratio of the trade You wish to enter..

A recommended Reward/Risk ratio I personally use is 2 : 1….

Which means :

Every time I win….I would win 2x !

And when I am wrong and lose….I only lose half ( plus spreads )

A Reward/Risk ratio of 2 : 1 is highly realistic simply because this is a ” Breakout ” set-up we are talking about here..

Where the price movements are truly MASSIVE when it happens…!

( Don’t believe…..? Open up You chart later and scan for those ” LONG Period of Tight Ranging Market “ to know what I mean here….)

Trading ” Breakout ” is truly simple and the reward are very good most of the time…

However…..

There would be times when the market behave in a uncertain way and resulted in a FAKE breakout

So what does that means ? FAKE..?

It means You would probably presume the market is breaking in ” that FAKE ” direction and so You also jump in…

Only to see the  market reverse and hit Your Stop – Loss order…  ( I hope You already have it set in the first place though! )

Then how to counter that ?

It’s coming up next…..continue reading…

————————————————————————————————————-

** 3nd (Final) Step : You need to know ” How ” to protect Your capital if it is just a FAKE Breakout..

————————————————————————————————————-

To be caught in a FAKE  breakout while using this forex breakout trading strategy  is not uncommon..

After all…the market is filled with ” meaningless ” and ” misleading ” signs…..most of the time !

And it is up to traders ( like You and Me ) to learn how to pick the more reliable ones and filter the bad ones..

Using a good Reward/Risk ratio of at least 2 : 1 is one good way to counter this problem and still make sure You would end up in Profits when the TRUE Breakout happens…

( Which is explained in 2nd Step….scroll up and read again if You need to ! )

That’s because if You’re made to believe that the breakout has happened and jump into it…..but at least You are using a STOP-LOSS to ” Protect” Your capital here…

A Stop-Loss place at the ” appropriate ” position is very essential here….hope You’re seeing it too.

Since it is in a TIGHT Range…..the Stop-Loss needed also would be very tight too….which is good.

If the first trend happens to be a FAKE Breakout…and get Your Stop-Loss hit..

Then when the true trend happens…..You would jump in with the good reward/risk ratio ..

Simply by following this direct and proven rule…You would be assure that ending up with profits end of month is very easy and achievable!

No doubt about it !

Another way to ” filter ” off FAKE Breakout is to only believe those that happen during the FIRST 2 hours of active trading period

Meaning for the US Market….it is from 12pm – 2 pm ( GMT )

And for the London Market….it is from 7 – 9 am ( GMT )

In the example above…..the trade is from the GBP/USD…

And the Breakout of the ” LONG ” candle happens at 1PM ( GMT ) ….which is the  active trading period of the US market…

So it is a sure sign that it can be trusted….

Nothing beats pulling out your chart and scanning for the ” Tight Sideway Range ” which I have been talking about really…

Get a ” Feel ” is very important especially when price movements are involve…

But one thing for sure….

Trading ” Breakout ” is truly Profitable because  of :

1) Good Risk/Reward ratio achievable…

2) Massive Movements and Lots Of Pips For You To GRAB ! * Smile *

Imagine You’re doing the same thing for 3 -4 currencies OR MORE….

I don’t need to tell You about the amount of PIps YOU can grab …..right ..

In fact….there’s a period of time when I ONLY trade the ” Breakout ” …

And not only do I have more time to do other things….( because I just need to scan the market every hour or so…..5 minutes at most  using my smart phone * smile )

But also….the amount of profits I got every month from  such forex trading strategy literally grow my account so rapidly too..

Yes….I can’t help but to emphasize again…

Just this ” ONE ” forex trading strategy is enough to make You smile month after month …….trading forex online.. * smile *

I knew it’s possible….because I have been there and DONE THAT !

If You’re ” still “ scalping the market for small profits of  15 – 20 Pips…

And somehow have to ” Glue ” to the screen watching every tick as the price moves…

Then maybe after reading this article about my Breakout forex trading strategy

You might consider try trading the ” Breakout ” to see what I mean by :

” ….It is truly profitable and need very little time from YOU – Proven ! ”

…..Thanks for reading this far…

I hate writing LONG WINDED post too….trust me on that ! LOL…

To Your Forex Success,

Aaron ( your trading friend )


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