simpleforex

Most approaches to systems of trading in the FOREX markets are of a predictive nature.

The reason for this is simple. With the high level of leverage one can use, if one can just predict accurately the direction the market is headed, literally millions of dollars can be made in the matter of just a few minutes. It is this possibility that is the root of the excitement one gets from trading the markets and the high one gets when he or she is right.

There is, however, another approach which is not as exciting but is logical and mathematical and does not require the use of predictive abilities.

Such an approach requires that one does not try in any manner to guess where the market is headed and have fixed strategies in place for each and every possibility within the market.

Such an approach does not leave anything to chance and in so doing, the outcome is always certain and the excitement of being right will not be there.

What is there however, is the profits that will come with it.

In making such an approach, one must look at all possibilities with every move of the market and if one does that, it can be seen that the market has only two possibilities at all times.

It will either go up or it will go down. It then just ends up with the same odds as a toss of a coin.

The odds in a toss of a coin is 50-50 and as such one cannot have a winning advantage so where can an advantage be created ?

Ok. What if we had a situation where you bet on a toss of the coin and if you win, you get twice what you bet ?

This now changes the picture dramatically.

Each time you win, you get $200 to your $100 bet...making $300 total

Each time you lose, you just lose your $100

Your odds of winning and losing still remains the same at 50-50 but your leverage is in the amounts you will end up with each time you win or you lose.

Let's try looking at 6 tosses of the coin and an even outcome throughout. So you would win 3 times and also lose 3 times.

Your outlay is $600 for 6 bets and you win 3 and you lose 3.

For each of the 3 wins you have, you get $300 which is $100, your original bet and $200 which you win.

3 wins will then total $900 for a total outlay of $600 equals a profit of $300.

Your betting could go like this.

Start $600, bet $100 ...Lost.. $500 remains.
Start $500, bet $100 ...Win .. $400 remains plus $300 win.. total $700
Start $700, bet $100 ...Lost.. $600 remains.
Start $600, bet $100 ...Win .. $500 remains plus $300 win.. total $800
Start $800, bet $100 ...Lost.. $700 remains.
Start $700, bet $100 ...Win .. $600 remains plus $300 win.. total $900

You could use this strategy here.

Simple 1 Step FOREX
Financing provided.

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