Many forex traders spend years and months looking for the elusive profitable trading strategy. I believed for the longest time that the market is out to get me, and to make sure I lose my money. Many a time I read about a strategy that performed so well for those who were following it, and as soon as I start to use it, it goes into a losing streak! It was terribly discouraging for a new trader.

Slowly, I realise that it's not the strategy that you use. Of course the strategy needs to be sound in some ways, but it does not need to have a phenomenally high probability success rate. The holy grail does not exist. What matters is your risk and money management, and the most important word of all, is Discipline. Without discipline, you can flush your 80% trading setup down the toilet.

I use a very simple breakout strategy on the GBP/USD. At 8 am London time, I will set up my trades to either buy or sell when the last few hours' channel is broken. Sometimes, when it seems like there's is a obvious trend line about to be broken and the high/low mark is pretty far away from the current price, I use the break of the trend line to determine my entry. I currently trade 4 mini lots. First 3 lots are set to take profit at 50 pips, 80 pips and 110 pips respectively. I leave the last lot running for as long as possible, and I adjust the stop loss to be near the latest big pull back, so in case the price turns around, I'll still have a big chunk of profits protected.

This has been working out terribly well since the start of the year. If you would like to see the profit/loss of this strategy, you can find it at http://slkforexjournal.blogspot.com/ .

I hope all you traders would understand that it is easier than you think. There are a few mental hurdles to get through, but once you get there, you will be well on your way to be a successful forex trader.