The Authority’ on Price Action Trading. In 2016, Nial won the Forex trading training for beginners Dollar Trader Competition. Simplicity is the most often and easily overlooked ingredient to profiting long-term in any financial market.
This article will help you understand why people tend to over-complicate Forex trading and how you can use the power of simplicity to your advantage. The truth about Forex trading So you’re excited about the latest and greatest programmed indicator that has been getting a lot of attention in the trading forums you visit regularly. You just know that this one will work because the returns that its creators have posted look absolutely brilliant, and you can’t wait to try it out. The truth is that nothing that is fully systematic will ever be a truly effective way to trade the forex market because the market is not a static entity that can be tamed through black box mechanical systems. The fact is, that while almost all traders would say they want to make trading a simple process, they are going about it in the totally wrong manner. Trading can only become simple once you forget about the idea of finding a perfect indicator-based trading system that will work in all market conditions. Markets are just too volatile and complex to ever be dominated by a piece of software code or a mechanical set of trading rules.
How does one keep their Forex trading simple? Holy-Grail trading system and START looking at the price bars on your charts. Learning the art and skill of price pattern recognition will provide you with a perspective and not a system. Not through complicated trading software or lagging indicator based trading methods, but through a discretionary market perspective that was developed through an awareness of price dynamics and market conditions in the various markets they traded. Clean vs Messy The purpose of this article is to help you understand that you can use simple price action setups to successfully trade the forex market. S method, as it relates to Forex trading, is built upon an understanding that the best way to navigate the market is by learning to interpret and trade the raw price action signals that form naturally in the market. By trying to force a set of strict indicator based trading rules around the unbounded arena of financial markets, many traders unknowingly make trading infinitely more complicated and difficult than it ever needs to be.