We said on Sunday that a big profit opportunity would present itself in the British Pound and the currency has soared to new 2 year highs, yielding a great profit for those who followed our trading methodology

So what is the outlook now? Let’s take a look.

When we outlined this trade on Sunday, we said that prices could go either way and were at a critical juncture.

We actually favoured the downside, but price action gave us a long signal, so we went with it.

By waiting for confirmation and letting price action tell you where prices are going to go is always better than trying to predict and removes the emotion from trading.

So where is the Pound going next?

Let price action confirm again and don’t anticipate.

We have a breakout to the upside and would now look for a weakening of momentum to take profit.

This would be signalled by:

1. A cross in the stochastic with bearish divergence
2. A weakening RSI

When you make a great profit in a short period of time it is tempting to take it, our view is normally to put half in the bank (which we are doing) and let the other half of the position ride and exit on weakness when it occurs.

KEEP IN MIND

As anyone who reads our articles knows and our main contention is anyone can make profits from currency trading with a simple system.

You don’t have to pay a guru and all the information is FREE on the net.

All you have to do is learn it.

We also like to demonstrate our methods with live examples (unlike many gurus or self proclaimed experts) and the above is yet another live profit.

If you want to make money in FOREX trading you can do so by applying a simple system similar to the one we used for this trade.

If you are novice trader:

Learn simple technical analysis - Support and resistance levels and look out for valid ones.

Then learn a

Breakout methodology

Finally, get some timing indicators to gauge momentum ( we use stochastics and RSI ) but you can pick ones that are logical and your comfortable with.

YOU CAN DO IT!

FOREX trading is essentially simple and if you learn the above ( FREE on the web) you can soon be making some great high reward low risk trades and the good news is you can do it all on your own.

Good luck!

Many people are looking for a way to get rich overnight. That there are many scams out there that continually lure people in with wild promises of instant wealth is easily demonstrated by watching television or checking the bulk folder of your email account. While there are some people that attempt to make ridiculous promises about the money to be made in currency trading, the fact is that for many it is just like any other type of work. You must be prepared to put in your time, have some success and also experience some failures now and then. If you are looking for instant success and have visions of spending the rest of your life on the beach after making a killing with currency trading, then you need to do some serious rethinking.

In like manner, you will need to posses the attribute of patience if you are to get anywhere with currency trades. While you may indeed experience incremental success with your transactions, your gains will come over time and usually will be rather small in and of themselves. You may need to hang on to a currency for a period of time rather than trading it off, with an eye to the way you believe things will look a week or a month from now. Make sure you can keep your cool and allow your better judgment to come into play. Patience tends to be rewarded handsomely.

The state of your finances also is a big factor when it comes to making a decision about getting involved with currency trading. As with any type of investment, you need to make sure you can afford to lose what you invest without creating any problems with maintaining your current standard of living. While some people like living on the edge, the fact is there is no glory in going for a deal and ending up having to sell the house in order to cover what turned out to be a bad deal. If you are not able to keep your head when it comes, to only using your disposable resources, to fund your currency trading, then you need to rethink the whole idea.

There is a lot of money to be made with currency trading. However it is not a venture that is right for everyone. If you are looking for a get rich quick scheme, have a problem thinking decisions through with a cool head, or have a tendency to not take care of your basic financial needs before you invest, then Forex currency trading is not the right choice for you.

One of the first things you will want to look for in any broker you hire to help you with currency exchange would be queries.The whole point of having the broker is so you have an expert who is able to interact with you on what currency to buy and to sell, and when. A broker that considers their time too valuable to spend with you is not a broker that you need to do business with.

An attribute that you want to seek out is that of being a partner in a financial venture. The bottom line is that if you are not making money, then your broker is not likely to be doing all that well either. And if you eventually lose your shirt and have to drop out, then the broker has lost a client. It is in the best interests of both you and your broker to make sure you are making money and increasing your portfolio. Interestingly enough, not all brokers have this mind set. Look for the ones that are interested in seeing your assets grow over the long haul and stay away from the ones that are looking to make a quick buck with you before moving on to the next person.

Accountability is another trait you want to look for in your broker. When making a recommendation to buy or sell a particular currency, a broker with this attribute will be able to articulate to you all the reasons why this would be a positive move for you. While "trust me" may be all you need if you are playing a board game with a friend, it is not enough when you are talking about your money. A solid reputable broker will know that and always has some very good reasons for the advice he or she gives you.

Essentially, a great deal of what you are looking for is simply honesty, integrity, and an obvious knowledge of how currency trading works. When you are able to find someone who exhibits all these characteristics, as well as being dedicated to making money with the customer, not off the customer, then you have found a Forex broker that is worth doing business with.

Today, well over 1 trillion dollars per day is traded on the currency exchange market. This amounts to roughly one thirteenth of the US GDP. This amount absolutely dwarfs what is traded on equity and commodity markets on a daily basis.

So why is exchanging currency so popular? Why do more people want to trade on the currency exchange market than on markets for commodities and equity? Well, to give a simple answer: many of the people in the market for Foreign exchange aren't investors. For instance, some of the biggest players in the money exchange market are multi-national corporations, who need to constantly swap currencies, so they can purchase inputs or finished products from producers in other countries. Other major players in the foreign currency exchange market include federal governments. They will often purchase other currencies to stabilize their own currency in relation to another. For instance, if the US Treasury or the Federal Reserve System were to purchase Euros (and subsequently take them off the currency market), the value of the Euro would increase in relation to the dollar. This would stimulate European demand for American imports while decreasing American demand for European imports.

While the above partly explains why the demand for exchanging money is so great, it does not do so completely. One other reason why the demand for foreign exchange is so great is because it is the most liquid investment vehicle available. While selling stocks and bonds may take a while and may be dependent on market conditions, selling currencies is usually quite easy. In fact, most online brokers allow you to trade with “no slippage,” which means that the second you click “sell,” you actually sell the currency you're holding at the exact swap ratio listed on the trading platform. This means that you don't need to worry about getting stuck with a currency that is rapidly declining in value. Rather, you can sell quickly and get out at any moment.

One last factor that has perpetuated the growth of the money exchanging market is international bank holdings. Not only do banks often exchange currencies for their business account holders when they make transactions, but they also sometimes offer to hold deposits in banks overseas or in different currencies. This can prove to be quite advantageous for depositors. For instance, if the value of the dollar is climbing rapidly in relation to the yen, Japanese banks may start to put some deposits into dollars. After the value of the dollar has appreciated significantly, depositors will be able to exchange the dollars for yen, getting back more yen per dollar than was initially deposited.

As you have read, money exchanging is a massive market, which influences the decisions of governments, businesses, banks, and individuals. Not only does Forex allow each of these players to make an extremely liquid investment, but it also makes foreign transactions easier.

Should you by FOREX advice from a guru or mentor?

Many novice traders think they should do this and it's easy to make money but you need to be very careful of the FOREX advice you buy as, 99% of advice sold on the net won't give you profits.

Here are some pointers on getting the RIGHT FOREX advice.

If the advice is so good why are they selling it?

Look around the net and you will see lot’s of FOREX advice that promises you instant riches, but consider this:

Most FOREX advice sold relies on sales copy that sounds convincing but the reality does not add up:

When you see FOREX advice sold, the first step is to make sure that the person selling it has a real time track record.

If they haven’t traded it and made money, why on earth would you want to buy it?

Look for a real time track record, which is audited over one or two years.

If they can’t provide this:

Don’t buy it.

There is a vast amount of FOREX advice sold ( mostly by sales people who have never traded in their lives or failed brokers and it won't make you money) they don’t trade themselves, but what they will give you in the vast majority of cases is:

A hypothetical track record.

Keep in mind - A hypothetical track record is done in hindsight knowing the closing prices!

Of course we can all make money doing this and you will never see one that loses, until you come to trade it!

Also, don’t trust testimonials.

These are normally friends, or someone who has had a lucky trade.

It’s a real time track record you are after.

This may not give you profits in future, but will show you that the vendor at least has confidence in his FOREX advice and that the logic is soundly based.

If you find a system with a track record the next step is to make sure you understand and the methodology suits your trading personality.

You will never follow advice from someone else ( even if it has a great track record ) if you don’t understand the logic it is based upon and can take the losses that occur on any system.

If you understand the logic of the FOREX advice you will be able to follow it with discipline.

Also, check the worst peak to valley drawdown, time to recovery and see if that fits in with your risk tolerance.

There is lots of FOREX Advice you can buy but only a small percentage of it makes money and an even smaller percentage of it will suit your trading personality.

Follow the above tips if you want to buy FOREX advice and make money.

A real time track record is your starting point.

Then, you need to know the logic the FOREX advice is based upon and finally, make sure you can follow it through the inevitable periods of drawdown.