TRADING FOREX BREAKOUTS
Trading fx breakouts is one of the more basic trading strategies, but nevertheless it delivers excellent profits. In fact the major banks and trading institutions trade forex breakouts all the time.
Just because a system is easy to follow does not mean it cannot produce consistent profits. Forex breakout trading is a method used by some of the most successful forex traders around.
It's based around the whole premise that if a currency pair is trading in a very tight range for a sustained period of time, then eventually it will break out of that range and more often than not it will continue moving in the direction of the breakout.
To make consistent profits you need to firstly identify instances where a currency pair is trading in a range, identify the direction of the trend and then place a pending order that will get triggered when the price breaks out of the range in the direction of the trend.
Many systems have been developed for trading forex breakouts but most suffer from poor money management, that is they win allot but ultimately lose money. This is because the Stop Loss is often much greater than the Take Profit. The Sure Forex System and Forex Breakout Robot offer excellent risk/reward ratios, in fact as high as 5 to 1. The Forex Gap Robot gives you an opportunity to trade the week gaps that often occur in the forex market. Whether you are new to the currency market or an experienced trader looking to add a stand alone system to your trading portfolio they represent an excellent investment.
Automatic Breakout Systems: Robots or EA's
The EA's or Robots are nice if you cant be in front of the computer a lot and are unemotional. that is they just watch the market and take the trades, they are never tried or anxious. The Forex Breakout Robot, is a fully automatic robot that trades the Sure Forex Breakout System has just been released, click here to read the full review.
For the experienced trader who has their own breakout method and wants to automate it the Forex Breakout Pro EA is recommended, as the screen shots show it can be set to trade any session and any currency with a multitude of settings.
Manual Breakout Systems
Manual Forex Breakout systems provide a framework of rules that dictates when to enter a trade. These systems are nice if you can trade either of the market openings and want to trade with solid reliable signals. The Sure Forex System gives easy to read entry signals and a 15 to 20 pip Stop Loss and a 75 pip take profit. This makes it an excellent addition to any traders tool kit. Or a good first system to those started in Forex Trading
Disclaimer
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
