Every Forex Trading Strategy can be broken down into a Rejection strategy or a Break out strategy, Our goal today is to examine the rejection strategy vs Break out strategy in the forex market, and help you make informed decisions, and to improve your Forex trading career.
Forex Trading is a zero-sum game, what you are losing, another trader is earning, and sometimes, that other trader is your broker, but that is a story for another day, you can read about manipulations By Forex Brokers here.
Break Out’s and Rejections are very common in the Forex market, despite this similarity in occurrence, Break out’s seem a lot more popular among retail Forex traders compared to rejections. Break outs are so much common to that extend we have very popular strategies such as the London break out that is sorted and traded by most trader’s in the world.
In most situations, every trade that is lost by the rejection strategy is won by the Break out strategy, how then do you become profitable when a single decision to buy or sell could mean doom or glory? we gave a detailed explanation in this video.
Rejection Strategy vs Break Out Strategy in Forex (Video)
However, here are a few things to note;
- Both Strategies could be profitable to you
- You don’t need to take a side
- What’s important learning to manage your risk professionally in the Forex market.