Forex Trading: The Secret Of “Mr X” And His 5 Figure Income Using Price Momentum

As a certified financial planner, I have often been amazed at the specific transactions that a client, whom I will call “Mr. X,” makes in the foreign exchange and stock markets. His calls are almost always winners, which means that his trading signals are very accurate. He doesn’t trade every day, because his trades are based on the trade setups he gets, which is about 3 or 4 times per month or averaging one signal per week. The most interesting thing of all is that he constantly decides a day before if there will be a commercial move or not. He is a trader who is always punctual with his entry and exit, which is very remarkable.

Needless to say, Mr. X has been making 5-figure incomes trading forex for years.

How does Mr. X do it so consistently?

First of all, it uses technical analysis and charts, and follows a trading concept called price momentum.

Price momentum dictates that when a currency breaks out of price, the momentum will carry it in the same direction, until it falters and the momentum dies down, and finally stops.

For Mr. X, forex trading is a profitable game as he has perfected his entry and exit positions based on many years of trading experience in the direction of price momentum.

Once a coin has broken through a price level and has indicated that it will continue in the same direction, Mr. X will simply enter a long position. Conversely, when he sees the price momentum drop and touch a certain level that he has determined before it occurs, he would be selling.

In this way, setting a cap on price momentum to ensure that it goes in that direction and exceeds it greatly increases your profits as this ensures that it does not get whipped. If the price momentum limit of “X” number of pips is not exceeded, Mr. X knows that the momentum is not strong enough to give him his profits and allows that signal to pass. This substantially reduces your risk and sets you up for massive profits.

Most of the popular coins are capable of big swings, swings that are explosive and wild several times a month, and when you adopt a price push method, you are well positioned to capture these explosive price moves and make massive profits.

Of course, there is a need to set a stop loss, because no trading system is foolproof. But when you use a price momentum trading system, you will easily find that forex trading is largely profitable.

It is so profitable that Mr. X also adopts the same principles in stock trading and with similar results.

In fact, trading price momentum can be your Forex cash cow strategy. If you want to see big profits on your trades, make price momentum part of your trading arsenal. With risk control limits in place, you can be like Mr. X, consistently racking up profits, month after month without losing a year.