The commodity futures trading market offers plenty of opportunities through which traders can earn profits from price movements. However, to make consistent profits, you need to use trading strategies that have been tested over time and have a proven track record over time. Additionally, as an individual, you can also come up with your trading strategy and test it over some time. There are multiple commodity futures trading strategies out there; however, if you are looking to make quick profits from price movements, then the Breakout strategy would be your strategy of choice.
Note: This article was designed not as a complete guide to trading commodities and futures, but rather as an easy to use manual that traders can use to make profits from Breakout strategy.
The breakout strategy is commonly used for intraday trading, which is day trading. Day trading offers the potential to gain high profits due to the high volatility experienced within a day. Even the slightest change in price can generate significant profits or losses.
So how exactly does the breakout strategy work?
The breakout strategy mainly seeks to capitalize on the short term price changes. This strategy is used when trading within a range of specified resistance and support lines. Traders maximize on trends that seem to move towards the support line or resistance line. The market cannot continue without making new highs and lows, and traders maximize on this. Traders typically buy with new highs and sell at new lows. One crucial thing to mention is that, although this strategy has the potential to bring in vast amounts of profits, trends are not only determined by support and resistance lines.
While having the right strategy will bring you significant profits, having an excellent brokerage platform that meets your needs will make trading easier. Depending on your trading strategy, location, and your trading needs, you need to choose a platform that best suits you. With the CoinBits trading platform, you can all you require in one platform.
Serving over 60 countries, CoinBits provides traders with all the tools and market insights you require to perform successful trades. What’s more, the platform also provides;
- High leverage – up to 1:150
- Tight spreads
- No trading fees or commissions
- Speedy trade executions
- Multi-platform trading options – WEB, MT4, MOBILE
- Transparent, clear UX
- Cutting-edge design and functionality
- First-class customer service
If you are planning to make trading a long term hobby or career or as a way to supplement your income, it would be advisable to consider choosing CoinBits as your platform of choice.