If you want to make money in forex trading then you need to learn forex trend following and how to lock into the big trends and milk them for all there worth. The big trends last for months or even years and can offer fantastic profits, if you learn to follow them.
So how do forex trend follow correctly?
Let's start with some basics:
The big trends in currencies last a long time, because they reflect economic cycles and they last for months or years, so currency trends do too.
Forex trend following does not mean trying to day trade or scalp this is a way to lose money, as all short term volatility is random so don't try it.
How do you catch and follow forex trends? You need a robust, simple, forex trading system which is based on forex charts. Here are the basics of a system that will catch EVERY Big move.
Buy breakouts - FACT:
Most major forex trends start from new market HIGHS, so you need to buy breaks of resistance.
The more times a resistance level has been tested the more valid it is and if possible the time frames should be weeks or months apart. The more tests, in more time frames and the wider they are apart the better.
When you buy these breaks make sure price velocity is on your side.
You can find out by using some momentum indicators these are covered more fully in our other articles - but two great ones are the stochastic and RSI Indicators. If they support the break then you have a potential high odds trading signal.
The stop is then easy - right below the breakout point.
With this method you're not interested in trading for the sake of trading, you need to be patient as the big high odds trades don't come around every day and sometimes you need to wait weeks or even months for a high odds trade to present itself but they always do and when they do offer stellar profits.
Your not interested in trading for fun - your interested in trading for big gains so forget all the lows odds trades.
Once you have locked into a trend and it's underway, you need to get ready for the hard part:
Following the trend and this takes a lot of discipline.
The bigger a profit becomes the more tempted a trader is to take it or lock in profits by moving his stop. The bigger the profit becomes the bigger the temptation is to take it, that's human nature - but you must stand firm.
You are going to have to sit on open equity swings against you which eat your open equity however so long as the long term trend is intact, hold it.
Trail your stop very slowly and way outside of random volatility and accept the fact when the trend changes you are going to have to give a good chunk back - but that's ok, if you caught 70% of every major trend you would be very rich.
Forex trend following is all about having a simple system, being patient, buying valid breakouts and following breakouts with discipline - its not easy to do - but if you can do it, you will make huge gains and enjoy currency trading success.
Latest Currency Trading Articles
Automated Currency Trading System - a Free One That's Made Big Gains for 25 Years!
By: Kelly Price | 12/10/2008
Here is an automatic currency trading system, that's been used by some of the world's best traders and its totally free for you to use. Take a look at how it can lead you to currency trading success. Everything you need to know about it is enclosed...
Best Forex Trading Indicator - for Trend Followers Simple Moving Averages
By: Kelly Price | 12/10/2008
The simple moving average is one of the most effective tools you can use. It's simple to understand and easy to use and if you are interested in getting in on trends, its one of the best forex trading indicators if used correctly.
Forex Education - Understanding Standard Deviation for Bigger Fx Profits
By: Kelly Price | 12/10/2008
If you ask most Forex traders what standard deviation of price is you will me met with a blank look but understanding it is essential Forex education which if you know its significance and use it, can help you make bigger forex profits...
Trading Forex - Icelandic Krona Troubles
By: Mike P. Kulej | 11/10/2008
All currencies have experienced huge swings during recent events, but one of them truly stands out. When the dust settles, will Iceland still have own currency?
Forex Signals and Market Currency Trading
By: Shawn Burgy | 11/10/2008
Forex Signals and Market Currency Trading:
Learn what Forex Signals could mean for you.
Forex Foreign Currency Trading is here to stay.
Learn what you need to learn to begin or stay on top of the trade today.
Forex Market Currency Trading
By: Shawn Burgy | 11/10/2008
Forex Market Currency Trading:
From Currency Pairs to PIP's.
You need to keep your eyes open in the world of Forex Currency Market Trading.
There are many pitfalls, And to be armed in the ways is for the best.
Forearmed is forewarned in the world of Forex.
Understanding The Forex Calendar
By: Rick Williamson | 10/10/2008
A forex calendar (also called a foreign exchange calendar or an economic calendar) is one which is designed to help traders and investors learn about upcoming major economic information, such as the consumer price index, private medical insurance rates, and unemployment rates.
Build Your Investments With Global Forex Trading
By: Rick Williamson | 10/10/2008
Global forex trading (forex, of course, meaning the foreign exchange market) has become more and more popular in the last few decades, mostly due to the advent of the global economy. Never before has our economy been so intertwined with every other country.
More from Kelly Price
Female Libido - How to Increase Libido Naturally
By: Kelly Price | 12/10/2008 | Women's Health
Female libido problems are common - but don't despair, here we will show you some natural herbs which if combined, will increase your libido and overall wellness at the same time...
Hard Erection - Get a Harder Erection Naturally
By: Kelly Price | 12/10/2008 | Men's Health
If you want a hard erection but you don't want to use prescription drugs, then the good news is you can get a harder erection naturally, with the proven herbs enclosed...
Automated Currency Trading System - a Free One That's Made Big Gains for 25 Years!
By: Kelly Price | 12/10/2008 | Currency Trading
Here is an automatic currency trading system, that's been used by some of the world's best traders and its totally free for you to use. Take a look at how it can lead you to currency trading success. Everything you need to know about it is enclosed...
Beat the Credit Crunch - Get Serious and Trade Forex in 4 Simple Steps
By: Kelly Price | 12/10/2008 | Wealth Building
If you want to beat the credit crunch then it's a great time to trade forex, in a market where there is never a recession and you can trade for big profits everyday. If you are prepared to put in some effort you can succeed, with the 4 simple steps enclosed...
Best Forex Trading Indicator - for Trend Followers Simple Moving Averages
By: Kelly Price | 12/10/2008 | Currency Trading
The simple moving average is one of the most effective tools you can use. It's simple to understand and easy to use and if you are interested in getting in on trends, its one of the best forex trading indicators if used correctly.
Forex Education - Understanding Standard Deviation for Bigger Fx Profits
By: Kelly Price | 12/10/2008 | Currency Trading
If you ask most Forex traders what standard deviation of price is you will me met with a blank look but understanding it is essential Forex education which if you know its significance and use it, can help you make bigger forex profits...
Forex Training - These Traders Learned Forex in 14 Days and Made Millions!
By: Kelly Price | 10/10/2008 | Currency Trading
Here we are going to look at forex training and a famous experiment when a group of traders with no experience were taught to trade in 14 days and then went onto make $100 million in profits. Let's see how they did it and what you can learn.
Forex Trading Tips - 4 Tips You Must Understand to Win at Forex
By: Kelly Price | 10/10/2008 | Currency Trading
Here are 4 Forex trading tips that if you understand them, can allow you to enter the elite 5% of winners who make big long term consistent profits. Anyone can learn currency trading and win but these 4 points need to understood - here they are...
Finance 
| Posted: 07-04-2008 | Comments: 
