You may study the support and resistance levels of a currency all morning only to watch your level be broken, hit 10 pips profit then reverse and stop you out, it is an all familiar story amongst inexperienced traders. It is only when you learn the market and how it reacts that you will find a successful forex strategy.
As we know the market moves in waves and trends either up or down, it is these trends that we are trying to take profits from. The usual rhythm of the trend is to push in the trending direction then reverse for a while before pushing again further in the trended direction. Although there is successful forex strategy that teaches how to use these reversals i.e Fibonacci levels, it can be unclear how far the reversal will continue or even if the trend is having a complete change in direction.
This successful forex strategy shows how to limit your risk and maximize your profit potential. It is a lot easier to get 10 pips than it is 100 so I always recommend using this strategy with a larger bet per pip, normally £10. When the trend makes the new high or low that is your entry point with a 10 pip target, not to exit the trade at 10 pips but to now manipulate your trade for maximum profit and limited or no risk.
Once you hit the 10 pip target or just after the trade will start to stall it is at this point that you should take 80% of your profits or £8 per pip, leaving £2 per pip running. Move your stop loss up to 10 pips below your entry point, now giving you a 20 pip stop loss. You have now banked £80 if the trade reverses and stops you out you will lose £20 giving you a total profit of £60. If the trade continues on its trend without stopping you out you could stand to make hundreds more with no risk at all. This is a successful forex strategy that works time and time again and has sometimes run into 100′s of pips profit with no risk.
Adam had been trading forex for 4 years with little success. Adam originally had no knowledge of the forex markets so he joined Colin Atkin’s private members club. Colin is a professional trader who shares his trading live, over a webinar three times a day 5 days a week, all you have do is copy what he does and take the profits. Since Adam joined Colin he has had the money to invest in other projects and gone on to be a successful full time forex trader and internet marketer.
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