One of the most profitable and consistent Forex trading strategies I’ve ever encountered was devised by a friend of mine named Barry. His strategy eliminates the need to know which direction the market is going to go and when it is going to do it. There’s no need to understand any of the complexities of why the markets react when they move. In fact, there’s no need to understand technical analysis, and you don’t have to place unnecessarily risky trades in order to win.
And what’s really great is . . .
• You don’t need to install, understand, or interpret any indicators
• You can be completely ignorant of how FOREX works
• This strategy is easy so that anyone willing to learn can do it and make good money
Here’s how the strategy works: Economists typically provide an estimate of news releases about a week in advance. The price of the associated currency pairs generally moves slowly during the week to account for the estimate. In the meantime, the actual value of the news item (like Non-Farm Payroll) is calculated by a governing body. Then, at a particular day and time, the governing body releases the actual value of the item to the world.
If the actual report is close enough to the estimated report, there is very little movement caused in the target currency pairs, because the market had correctly anticipated the news and adjusted accordingly beforehand. But the more the actual value deviates from the estimated value, the bigger the adjustment, or spike will be to compensate for the difference.
If we get a spike big enough to hit one of our stop orders, we then have an extremely good live trade, and we’re ‘off to the races’. And the great news is this entire approach has been automated with some extremely, easy-to-use automated software.
The basic concept behind the software is to enter a Buy stop and Sell stop order as close to the release of a major news announcement as possible, preferably with a second or less to go before the announcement. This is a simple concept, but obviously timing is very important. Without the right software, it is impossible to time these big moves because it all happens so fast.
In the ideal scenario, the news item is released deviating substantially from the analysts estimates, causing a large (20 pips or more) spike in the price of the pair in one direction or the other. Which way it spikes is irrelevant since we place two pending orders, one in each direction.
Upon spiking, one order is taken in and is instantly profitable, while the software takes out the other pending order. In this scenario, there is no anxiety about the trade. The news comes out, and as fast as things update on your trading station, you are profitable. It’s an amazing phenomenon to watch, and I never fail to get excited when it happens.
A trader does not need any background in Foreign Exchange trading in order to be successful with this style of trading. The trader simply selects a broker and download a copy of the MetaTrader 4 (MT4) trading platform. Next, the trader needs to procure a copy of Barry’s software and become familiar with its functionality.
The fast gains are a joy to behold, and considering that virtually no FOREX knowledge is required to put it into use, this is the ideal tool for every trader who wants to increase their income! Forex trading has never been more profitable, with little stress, and virtually no uncertainty.
If you’d like to learn more about Barry’s style of trading, I’d like to send you a special report that explain everything in much greater detail.