It's an old investment wisdom and you have probably heard it many times before but it doesn't work in Forex trading; if you want to win and make money, you need to understand why its doomed to failure and a better way to trade.
Buy low sell high to most traders means predicting where a market will bottom and where it will top but its really just hoping or guessing because Forex markets simply cannot be predicted - the price is made by humans and their creatures of emotion not of logic - so what's a better way philosophy of trading then?
Fx Trading
The way to catch every big trend in Forex is simple - Just look at any chart and you will see EXACTLY how every big trend starts and continues and if you look closely, you will see that all big bullish Forex trends, start by breaking to new chart highs and they continue breaking them, as the trend evolves.
You are predicting NOTHING when you buy a breakout, you are simply acting on the reality of the price and trend change as it occurs and if the breakout is a valid one, you will have the odds on your side which is the only way to make money in currency markets.
While breakout trading is simple, logical and anyone can see it works, most traders still don't try this method and the reason is the believe the myth of prediction or want to wait for prices to come back to a lower level to get in and this simply doesn't happen. The losing trader, can see the trend start on the chart but doesn't get in and misses an excellent opportunity for profits.
Many of the top traders in the world use breakout trading methods and if you do too, you will have an easy to understand and timeless way to make money. So - don't think "buy low sell high" think "buy high sell higher" and trade breakouts for bigger Forex profits!
Forex Trading - Why Buying Low Selling High Doesn't Work in FX Trading
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