Trading CAN be extremely easy. It's as simple as that. The easiest and most profitable way to make substantial ROI is by following major Support & Resistance levels taking them from weekly and monthly charts. A typical example would be when price is declining and approaches a major support level, simply shorting that level with a tight stop and re-entering upon a failure break will provide huge benefits on most occasions. You can use oscillators, but even they are not essential for this. The further back you go on a chart the more levels will be generated providing potential profit targets. Always use a tight stop, do not use breakeven and do not scale out. All in, all out. Small losses, huge gains. If you are not finding success daytrading or do not want to sit at your PC all day long, using this incredibly simple method will improve your odds of making money from trading - any financial instrument, any market.
A typical example is present right now in EUR/USD. Weekly support @ 1.3126. Last Friday price closed 2 pips above it @ 1.3128. So far, running a 20 pip stop, there was 1 failure break. At times there can be a lot more than that. Next support on weekly is @ 1.2731. That is one of the targets on this trade, which is a potential 395 pip profit. Even if one was to cover prior to that level, the odds are very good of making a substantial ROI shorting 1.3126 now.
Could well be, I don't believe there is anything original in what I have suggested. But IMO this method is a lot more profitable than many intraday based modules.
Error: 3 failure breaks so far since Dec 15, 4th attempt to break 1.3126 is taking place now. Actually 2nd time that level was taken resulted in >70 pip drop. But this is not the real target using these time frames. Though I am using a wider stop at the moment due to my broker widening spreads, I would say a 10 pip stop is adequate. So -40 pips so far as 4th attempt to break 1.3126 has failed.
You may want to check those levels out intraday. I have a feeling that a lot of those clean breaks shown on the weekly chopped around on a 15 minute or daily enough to get you in and out several times. This would eat up many small losses, commissions if you are trading large size and not to mention frustration. I agree with simplicity, but dont know if you could assume this technique's profitability by just looking at a weekly chart.
I was waiting for this, excellent point apex82! You are indeed correct in your assumptions of an intraday chop, it would be wise to check effectiveness of this method, prior to any actions being taken. I did look into this and IMO reward greatly outweighs risk. But that is strictly IMO. BTW all my trading activities are commission/tax free
Spreadbetting in the UK is commission/tax free (for UK residents), though spreads can be wider, on ES 0.4 pts, but most FX pairs are 2 pips most of the time.