Previously we discussed the internet selling trading strategies in profusion. As long as their is a need and belief for becoming rich overnight on the markets the selling of strategies will continue. Now I am going to show you the best strategy you will ever need to make money from the markets.
I have been investing in the stock market for nearly 20 years. I had bought shares and held on to them for years. I have even had shares handed down to me and continued to hold them. Like many investors, I used the buy and hold strategy. This works well in a bull market but does not work in a bear market. So, after the markets changed to a bear market in 2000 I felt my perfect strategy was losing me money at which point I needed to learn why.
Me and Javid attended a stock market weekend training course soon after the bear market began and I quickly realized I did not know anything at all as far as trading was concerned. I fooled myself in believing that because I made good money from my buy and hold strategy that I knew all I needed to know from a trading perspective.
After doing the course I looked at the markets in a different light. I knew more but I also knew I didnt know enough. Javid decided to attend further courses both in the UK and USA and had 4 seperate mentors. After almost 18 months and courses and mentoring, creating and testing strategies, learning trading software packages and trading platforms Javid started making money from the markets. Javid mentored me and showed me how to make money from the markets too. I began to think this is quite simple but was nervous at the thought of this actually working consistently. In fact I was making more money from trading then being employed but refused to leave my job in case these strategies stopped working. One day Javid convinced me to hand in my resignation which I did and I am very happy to say it was the best decision regarding employment I have ever made.
So, now that I was no longer employed I had to build upon my experience on the markets and became a full time trader. I called upon Javid for further education and strategies and the mental approach I should take towards trading. This took a while for me to grasp and the cool mental approach was not easy for me but I learned the process Javid showed me and removed much of the emotion I had from my trading. Now that my mental approach had been worked on, my trading style had to be identified.
So, why don't I buy a pdf for $97 or a pre built black box strategy for $15,000 off the internet and just use it to make money? The reason is many trading pdf's for sale on the internet are produced by clever thinking marketeers. They can entice you to buy almost anything because that is their job. They market products but many of them are not traders, they are full time marketeers! A black box strategy throwing up buy and sell signals without a valid reason is similar to driving a car without brakes. Our left brain needs answers and not understanding buy and sell signals is disastrous long term for trading.
With all that said what strategy do I use? From the mentoring Javid may have given some of you reading this forex post and webinars you may have attended, one of Javid's favourite trading method is breakout and breakdowns. This is exactly what I look for and so do the majority of professional technical traders around the world. At the end of the day the markets come down to support and resistance levels. A support level breached signals further weakness where as a resistance level broken signals further strength. It really is as simple as that. This is the best strategy you will ever need as far as technicals are concerned. It has been tried and tested for many many years and it is what works. Looking for breaks of support and resistance levels gives you directions. What needs to be added to these breaks is confirmations and filters. Adding these confirmations and filters will remove some fake breakouts.
So, when you next look at a chart, identify the support / resistance levels. If price moves beyond these levels then include a filter to add credibility of this move. Finally confirm the breakout / breakdown with some confluence of events. Now you have a full working strategy. This is what I use in addition to others but this alone when perfected can make a good income for any educated trader. To a non educated trader this may seem like rocket science but to those Javid has mentored and trained this shoud be much easier to create.
Good trading.
FX Analyst
Anne Chapman
