• Section: Money Guide - Category: Invest Online
• Written by Monica Hendrix

If you want a simple forex trading system that makes money then we are going to give you one that you can get off the net for free. Best of all its easy to understand easy to apply and makes big profits so let's look at it.

This system works on the following basis it buys "high and sells higher" while most traders look to "buy low and sell high"

Lets look at the theory and then how you can execute your trading signals.

1. The Logic & the Theory OF the System

Why buy low sell high doesn't work

Its an accepted market wisdom and it doesn't work. If you try and buy the low of a market you are guessing or hoping and the market will kill you.

However if you look for important breaks of resistance and an acceleration in price momentum, odds are the trend will continue and you can follow it for huge profits.

So why doesn't every trader do this?

Because they want to buy the pullback and think they

have missed a bit of the move (this is true but you needn't worry about that if the price trend continues) they then wait, prices don't pull back and they miss the move.

Its hard mentally to miss the start of the move, but if you grit your teeth and enter you will see a lot more profits come your way and be in on all the big moves.

Furthermore most of the big currency trends of the year start from new market highs NOT market lows.

So that's the theory, this forex trading system is based upon.

Now lets see how to construct a system to trade breakouts.

You need to look for important resistance levels and this is normally a level that has been tested 4 times or more and repelled

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