Currency Trading Profits – A Simple System Making Millions

Here we will reveal a system for currency trading profits, which has a logic that is so simple, ANY trader will see why it works, and why it will continue to work, as well as how they could be making big currency trading profits too!
If you use this system in currency trading, you will have the potential to catch EVERY major currency trend.
We have all heard this investment wisdom: "To make money buy low sell high"
However there is a better way to make big currency trading profits and the wisdom here is: "Buy high and sell higher"
This will become clear with some explanation:
Ignore Traditional Investment Wisdom if you want the Big Profits!
If you want to "buy low and sell high" you have to guess where a market is going to bottom and this is not easy. You are trying to PREDICT where a trend might start - this very often means the market goes lower and you lose.
Investors and traders are taught to "buy low and sell high" but when a huge move starts they watch and wait for the pullback - it never comes, the market simply goes higher, and they never get in.
The problem with this traditional investment wisdom is you end up trying to pick market bottoms, and try to get in on pullbacks, but when a market trades higher quickly, you miss the move.
This sees traders lose on trying to pick bottoms – they don't make the profits they could have made from the big moves.
Breakout Systems are the Best for Catching the Big Profits
A breakout system does not try to predict a market bottom - it waits for CONFIRMATION.
It will wait for a market to break above a recent high, (resistance) or break below a market low, (support) if these levels are broken, a move will start, and astute traders ONLY trade the break - they don't try to predict.
You can make big profits on these breaks - look at any currency you like: Japanese yen, Swiss Franc, British Pound, etc. and you will see huge moves from breakouts.
The Best Risk Reward
The breakout point provides the best risk to reward, to enter the trade.
Why? Lets take a hypothetical example:
The British Pound has traded up and tested resistance at 1.85 several times, and is currently trading at 1.70. The market rapidly trades up to 1.85, and immediately breaks to the upside, and quickly goes to 1.95
What has Actually Happened?
When the critical 1.85 area gives way, traders with stops on their short positions, start to cover, and new traders enter the long side of the trade. This causes a huge surge in price - as the area of resistance is so important.
If you are positioned to get in as the breakout occurs, your risk is low, and reward high.
Many traders don't want to do this - they feel they are "chasing" the move, and want a pullback - it never comes, and they miss the big profits.
Keep in mind the old saying:
"A trend in motion is more likely to continue than reverse"
Check Your Charts
Most of the big currency moves in history have started with breakouts on the chart, then a huge quick move to the upside - with no PULLBACK
Big Currency Trading Profits can be yours!
Here we have looked at the concept, and why it's successful, and you can see how uncomfortable it is to do - and that's exactly the reason it's so profitable!
Breakout Trading is Simple
All you need to use to trade breakouts, are traditional charts - and have some confirmation signals, to help you filter "true" from "false" breakouts - such indicators as RSI and Bollinger bands, are examples.
Astute traders are making huge profits every day from this simple method and you can too.

 

What are you really selling or buying in the currency market?

The short answer is nothing. The retail FX market is purely a speculative market. No physical exchange of currencies ever takes place. All trades exist simply as computer entries and are netted out depending on market price. For dollar-denominated accounts, all profits or losses are calculated in dollars and recorded as such on the trader's account.

The primary reason the FX market exists is to facilitate the exchange of one currency into another for multinational corporations who need to trade currencies continually (for example, for payroll, payment for costs of goods and services from foreign vendors, and merger and acquisition activity). However, these day-to-day corporate needs comprise only about 20% of the market volume. Fully 80% of trades in the currency market are speculative in nature, put on by large financial institutions, multi-billion dollar hedge funds and even individuals who want to express their opinions on the economic and geopolitical events of the day.

Meaning of Trading in Pairs

Because currencies always trade in pairs, when a trader makes a trade he or she is always long one currency and short the other. For example, if a trader sells one standard lot (equivalent to 100,000 units) of EUR/USD, she would, in essence, have exchanged euros for dollars and would now be short euro and long dollars. To better understand this dynamic, let's use a concrete example. If you went into an electronics store and purchased a computer for $1,000, what would you be doing? You would be exchanging your dollars for a computer. You would basically be short $1,000 and long 1 computer. The store would be long $1,000 but now short 1 computer in its inventory. The exact same principle applies to the FX market, except that no physical exchange takes place. While all transactions are simply computer entries, the consequences are no less real.

Great Returns in Currency Trading

The opportunities for unmatched returns and investment protection in the brave new world of foreign currency investing are second to none. In Foreign Currency Trading, financial executives Russell Wasendorf, Sr., and Russell Wasendorf, Jr., describe foreign currency trading in plain terms, and help you understand the risks, benefits, and operational requirements that you will need to take advantage of this market's tremendous potential. Look to Foreign Currency Trading for clear explanations on the mechanics of foreign currency trading, in-depth discussion of all pertinent foreign exchange rules and regulations, and a comprehensive glossary with literally hundreds of terms essential to forex trading. With formerly imposing currency trading restrictions having been struck down in recent court rulings, the world of foreign currency trading is an exciting and rapidly-expanding field.

Bollinger Bands - How to Use Them to Make Massive Profits

Bollinger bands will help you to predict big trending moves, act on big trend reversals and finally, time trading positions with Greater accuracy for bigger profits.

Here info we have related Bollinger bands to the currency markets (as it is here That They Are Most useful) - but They are useful in all financial markets.

What are Bollinger Bands?

Developed by John Bollinger, Bollinger bands are volatility bands drawn around a simple moving average.

You calculate Bollinger bands using the standard deviation of price over the same period as moving averages and plotted as lines above and below the moving average.

As moving averages Have Been traditionally used to identify identity the Underlying trend, Bollinger bands combine this With The volatility of the single market (or the standard deviation) - to plot a trading envelope.

The Distance between upper and lower Bollinger bands Reflects the volatility of the market traded.

As Themselves force prices away from the longer-term average, the standard deviation rises - and Malthus the bands will fluctuate in varying Amounts, away from the average.

Why Bollinger Bands Work

In any market, the value of currency traded Tends to rise slowly over the longer term.

Prices May spike short term, but will normally dip back to the longer term moving average (the center band) - which dealer to realistic value.

The volatility of the outer bands THEREFORE Gives us an indication of how volatile prices are - and how far away price is from longer-term value.

Most price spikes are Caused as much by trader psychology, as the supply and demand backdrop - And This scenario is Reflected in the concept of Bollinger bands.

Why are Bollinger Bands so useful?

Bollinger bands perform three major functions for traders:

1. Spotting a Breakout and New Trend

Markets move Between low volatility trading ranges, to high volatility trending moves.

When a market makes trades in a narrow range, the Bollinger bands will narrow together And This shows a market with extremely low volatility - this is a warning however it That a high volatility trending move is likely to follow.

When prices break above or below the upper or lower band, it is an indication That a breakout and trend is acerca to Develop - traders will then take a position in the direction of the breakout, and try to ride the trend.

Two. Timing Entry Levels in a Trend

We all know long term currency trends last for months or years - but we need to get in at the best risk / reward level.

Bollinger bands will help get you in to the trend and time your entry.

All you do is watch for dips Toward the center band - and enter in the direction of the trend - it really is That Simple!

To time your entries with Greater accuracy, and filter out "false" breaks we recommend using a momentum indicator -: such as stochastics, to confirm the move.

Three. Spotting Market Reversals

When the price touches the top of the band, a sell is generated, and prices Should revert back to mean, or the middle moving average band.

If the price touches the bottom of the band, traders can buy a currency, Assuming That it is oversold, and will rally back towards the top of the band.

The spacing, or width of the band, is dependent on the volatility of the market, but traders Gives a clear indication of where prices will go, and when to enter.

A Word of Caution!

Bollinger bands are a useful tool - but need combining With Other indicators, as With Any single indicator, They Should not be used in isolation.

We personally feel Bollinger bands Should be used with basic charting, to get the big picture - and the best timing indicator is the stochastic As stated, to filter out "false" signalsA