Currency Trading System - Build One for Big Profits

By: Kelly Price

Most novice traders think building their own trading currency trading system is hard but it's a lot easier than you think and here we will look at how to put one together that will win in 3 simple steps.

Most novice traders make the mistake of buying a currency trading system from a vendor which is normally an equation that has a simulated track record and lose.

Lets face it most systems sold online are junk but there are a few good ones and traders still manage to lose with these.

Why?

Because they are following someone else and don't have confidence to follow the system through periods of drawdown to longer term currency trading success - this is precisely why you should develop your own.

This is the equation for market success:

Logical Robust Method + Discipline to Apply = Forex Trading Success

If you learn and understand your system you will have confidence in it and will be able to follow it with discipline. Discipline comes from understanding and confidence and that's why you should take time to build your own.

When building a forex trading system there are a few points you need to keep in mind:

Simple Systems are Best

Simple systems are easier to understand, easier to apply and more robust in the face of brutal ever changing market conditions.

Trade Longer Term

Never day trade you will lose as all volatility is random choose currency swing trading if you lack patience or long term trend following if you are more patient.

Three Key Elements To Understand

The easiest way to trade for a novice is to use a breakout system.

It's a fact that most major moves start from new market highs so you need to be prepared to buy them.

Most traders simply cannot do this and that's precisely why it works. While you take the break they wait for the pullback that never comes.

Trading breakouts are when the odds are at their best and if the breakout is of an important resistance level a mega trend can often follow which accelerates away and doesn't pull back and it's a great feeling when you are on board and the losing herd are not.

Trading breakouts is simple to understand and easy to apply you only need two other elements that you need to understand.

Support and resistance and its validity

The more times a level has been tested the more valid it is and if these tests take place in time frames that are wide apart even better.

And

Confirming the move with 2 or 3 momentum indicators to execute your trading signal. These are simply leading indicators that you can use in forex technical analysis and apply on your forex charts to give an idea of shifts in price momentum and see if velocity of price supports your view.

In part of this article we are going to show you how to put this forex trading strategy and apply it for profits - will it work? The answer is yes and more importantly, as you will understand it you can apply it with discipline for currency trading success.

We need to elaborate on the following points but in part 2 we will bring it altogether and give you your currency trading system for profit.

Trading
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