Any body even a newbie can build a profitable forex trading system all you have to do is make it fit your personality and follow these three main points.
1. Keep it simple. It is proven that systems work far better when things are kept simple.
2. Cut your losses and let profits run. Always risk less than you are gaining this is paramount to your long term success trading forex.
3. Trade with the trend. Always follow the longer term trend, this will place the odds of your trade being profitable far higher.
Right then now lets get on with building our profitable forex trading system.You need the following components in your system.
Entry- defines your entry into the market
Stop- defines your risk on the trade
Trade management- defines when to move stops and lock in profit or take profit off the table.
Exit- defines where to exit your position.
Keeping all these points in mind lets build a profitable forex trading system.
For my entry I will use support/resistance horizontal lines with a engulfing candle. Trades can only be taken with the longer term trend!
My stop will be placed behind the engulfing candle risking no more than 3% of my account on each trade.
I will use a trailing stop of the same amount I risked to lock in profits as the trade moves into profit.
I will exit the position once I have gained 3 times what I risked doing this means I only have to have 25% profitable trades to b/e.
That's it, I have created a profitable forex trading system, how do I know its profitable? I back tested it manually over lots of data. I suggest you do the same with your system and your will get a huge confidence boost in your trading.
While creating your first profitable forex trading system try to keep in mind your situation. How many times you want to trade a week. What your schedule is and build around these things.
Do You Want To Make Consistent Money Trading Forex? Dean Saunders has created the *Ultimate* FREE forex trading system that has helped 100's of Forex Traders become profitable. Click Here and grab your FREE copy of Dean's amazing trading system!