A Fool Proof Forex Strategy
Let’s get one thing clear at the start; this is not a complete guide to forex trading, but it is a guide to a fool proof forex trading strategy which as a beginner should maximise your profits and reduce your losses. It’s a simple, effect strategy of forex trading with limited knowledge.
If we assume that you have some knowledge on forex charts and the use of spread betting platforms, what is described bellow should boost your confidence in forex trading, knowing that you cannot loose any money after the initial entry point.
We know from experience that once a currency trades, the trend will move in waves. A good trade will move up to a point, before slipping down and then moving up again, braking through the previous high point. It is these break through points that are crucial in making this strategy pay.
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.
When you reach your target, take out 80% of your profit of that trade and leave 20% still running. You should also adjust your stop loss up to your entry point. This will ensure that even if the trade drops back, you will not lose any money and you will at a minimum have 80% of your profits from using this forex trading strategy.
Say you traded on this strategy at 10 per pip. The initial profit you made would be 80 and providing the 2 a pip that is left running doesn’t drop back, you could potentially make a large profit from the long term trend at no risk.
You will see that this is a profitable, fool proof forex strategy, once it is has been tried and tested on many trades. The key to its success is aiming for the initial 10 pips and resist the urge to be greedy.
Adam Woodshas been trading forex for 5 years and uses this same fool proof forex strategy to regulary take money from the forex market. Every trader develops their own forex strategy over time but none are as easy as this one
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