As a Certified Financial Planner, I have often been amazed with the specific trades that a client, whom I shall call “Mr X" places in the forex and stock markets. His calls are almost always winners, which means his trading signals are very accurate. He does not trade every day, because his trades are based on the trading setups that he obtains, which is around 3 or 4 times every month or averaging a signal a week. Most interesting of all, he is consistently one day earlier in deciding whether there is going to be a trading move or not. He is a trader who is always timely with his entry and exit, which is highly remarkable.
Needless to say, Mr X has been earning a 5 figure income from trading the forex market for years.
How does Mr X do it so consistently?
Firstly, he uses technical analysis and charting, and follow a trading concept called price momentum.
Price momentum dictates that when a currency breaks out in price, the momentum will carry it in the same direction, until it falters and the momentum decreases, and finally comes to a stop.
For Mr X, forex trading is a profitable game as he has perfected his entry and exit positions based on many years of trading experience in the direction of the price momentum.
Once a currency has broken out of a price level and has indicated that it will continue in the same direction, Mr X will just make a purchase position. Conversely, when he sees the price momentum dropping, and touch a certain level that he has determined prior to the occurrence, he would be selling.
In this way, setting a limit to the price momentum to ensure that it goes that direction and surpasses it, greatly enhances his profits, as this makes sure that he is not whiplashed. If the price momentum limit of a “X" number of pips is not exceeded, Mr X knows that the momentum is not strong enough to give him his profits, and he allows that signal to pass. This reduces his risk substantially, and sets him up for massive profits.
Most popular currencies are capable of large swings, swings that are explosive and are sharp several times a month, and when you adopt a price momentum method, you are well placed to capture these explosive price movements and reap massive profits.
There is of course a need to set a stop loss, because no trading system is foolproof. But when you do utilise a price momentum trading system, you will readily find forex trading to be largely profitable.
It is so profitable that Mr X adopts the same principles in trading stocks as well, and with similar results.
Indeed, trading price momentum can be your Forex Cash Cow Strategy. If you desire to see large profits in your trading, make price momentum a part of your trading arsenal. With the risk control limits in place, you can be like Mr X, raking in the profits consistently, month after month without a losing year.
To discover powerful professional trading secrets to help you create a 5 figure income trading forex in the comfort of your home, visit the author's website at http://www.fx-trading-strategies.blogspot.com