Progressive entry technique

Posted by Scriptaty | 1:07 AM

Unlike the stock market, which can be affected by many company specific factors, the currency market is almost uniformly focused on macroeconomic trends.

In the stock market, prices can rise in the morning on good news from Microsoft only to collapse later in the day on a warning from General Motors. In the currency market, however, price moves driven by major fundamental adjustments are more likely to continue. As a result, many traders like to buy breakouts and sell breakdowns with the goal of capturing additional price movement in the direction of the original price thrust.

If it was truly that simple, however, every forex breakout trader would be a multi-millionaire. In reality, the breakout trade, like every setup, requires nuanced understanding and proper planning and execution to be profitable. The trade-management approach outlined here, which enters a position incrementally based on price movement after the initial trade signal, should provide you with some ideas for your own trading.

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