How to Make Money Using Trend Forex Systems

Richard Donchian originated the 4 week rule. His rule states that you should get a 4 week high and hold calendar until a 4 week low at which point you should reverse your position. You repeat this process for every high and low that is on a 4 week cycle. By this rule, you will always have an open position and then reverse the position once a low hits.

The reason this system works is that it enables you to jump on a trend very early and then hold onto it for the maximum amount of the position. It is a very simple idea, yet it works very well in long term trading positions.

As you spend more time in the forex market, you will realize that it is the simplest systems that work best. Yes, the KISS principle - Keep It Simple Stupid works in currency trading too. There is so much information to digest at times and then when people add complicated systems to the process, they often lose the trend that they are evaluating as it takes them to long to realize that a profitable trend has hit.

These types of trend forex systems will continue to work in a trend long market and that type of market should not change anytime in the near future. The key to the whole forex system is to have the discipline to follow it and make sure you stick with it and do not get off if you get the itch to get more involved in the market. Stick with your system and watch the profits roll in.

There are plenty of traders out there that start out successful and then crash and burn down the road. The reason is that they jump in to far or they switch over to forex day trading because they want more action. You will have to ask yourself if you want to make more trades of if you want to make profitable trades. Unless you are a fool, making profitable trades should be your choice and this trend forex trading system is the one of the best forex system to put money in your trading account.