Forex Trading and Forex Markets

In this article we will reveal the best methodology for big profits and tell you the methods that simply won't work. So if you want to know which method of trading your trading system should be based on read on...

Let's start first of all with the trading methods that will simply see you lose

1. Day Trading and scalping Methods

Very popular and they don't work. All volatility in short time frames is random you cannot get the odds on your side so you lose. Sure you see lots of vendors selling scalping systems with big gains - but their all paper back tests knowing the closing prices and these track records never repeat! Avoid these systems at all costs.

2. Complex Mathematical Algorithms

These are heavily promoted by Forex robot vendors and the problem is Forex markets don't move to mathematics, they move to the odds and all these systems get wiped.

Sure, you see track records but yes you guessed it - there back tests, or presented by the vendor who has a vested interest. It's obvious you don't get financial freedom for $100 yet traders continue to buy into this theory and lose.

3. Predictive Systems

You see a lot of systems that claim markets move to some higher theory and can be predicted but try and predict and you're guessing and you will find your trading signals are as accurate as your horoscope. Also, its common sense that if markets did move to science, there would be no market, as we would all know the price ahead of time.

The far out crowd love theories such as, Gann, Elliot and Fibonacci but my advice would be avoid them.

Now here are the best system methodologies and the one you base your Forex trading system on, is down to your trading personality.

1. Swing Trading Overbought and Oversold Levels

A great way for novices to trade, it's exciting, easy to learn and requires very little discipline and I would recommend it to anyone and it beats day trading hands down.

2. Long Term Breakout Trading

It's a fact that most big trends start and continue from breakouts to new highs and lows and these trends can last from many weeks to years.

If you buy and sell valid breakouts you can get into and hold all the biggest trends. As long as markets trend, breakout trading will continue to work. Simple to understand and easy to do, it's a great way to trade.

3. Contrary Trading

The contrary trader looks to sell greed and buy fear, when the market has pushed prices to far from fair value.

When others think a market will fall or rise forever, the contrary trader knows this is not true. If you can buy and sell into fear and greed, you can enjoy huge profit potential and low risk.

It takes experience and an iron nerve to do but when you hit those big turning points the feeling is unbelievable!

Odds V Science

Whatever trading methodology you use, always remember you are trading odds not certainties and you need to employ strict money management at all times - always assume the worst and things can only get better!

Simple V Complicated

As Forex is an odds based market simple systems always work best and if you complicate a system it will have too many elements to break.

Trade the Truth!

If you then trade the reality of price change and don't predict, you will have the odds on your side and enjoy fantastic long term profit potential.

About the Author:

NEW! 2 X FREE ESSENTIAL TRADER PDFS

ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info and more on the Best Forex Trading Methods visit our website at: http://www.learncurrencytradingonline.com