In order to achieve consistent profitability in the forex market or in any financial market you must have a plan of attack. Forex traders need a defined plan before going to battle in the market just as any military defines its plan of attack before going to battle the enemy in order to keep emotions in check and maintain objectivity. Obtaining a clear, simple, yet adaptable and concise trading method to navigate your way through the changing forex market is essential to profitability. Many traders unknowingly cloud their vision by putting numerous indicators over their price charts and over analyzing any market data they can find. Learning to trade using simple price action setups will be like trading with the high beams on; you will notice things you didn't previously notice and be more aware and connected to what is actually happening.
Remaining calm and objective while trading the forex market is paramount to long-term profitability. When you trade with price action setups you can patiently wait for your setup to form and only take the most well defined trades that meet your specific criteria. Having a method that reflects all variables in the market such as price action analysis allows you to be confident in your analysis and remain aware of the fact that there is no need to analyze every economic report or indicator available. Often time's traders get caught up with making up signals when they really are not there or trying to guess what direction the market will move as a result of an economic news release. One of the great things about price action is that you don't need to guess or trade off the news, you know what you are looking for and the setup is either there or it is not.
One of the most important revelations that some traders make but few find out easily is that forex trading does not have to be complicated or frustrating. Many traders mistakenly believe that the more technically complicated their method of trading is the more money they will make. In fact, the best traders in the world generally trade off pure price movement or by reading tape. In the book "Reminiscences of a Stock Operator" the depiction of famed trader Jesse Livermore trading off price movement via tape reading is very similar to pure price action trading. The emotional desire to make trading insanely more complicated than it needs to be is related to our need to feel important or to stroke our egos. Fortunately there is no room for egos in the forex market, and generally speaking the degree to which a trader's ego is over-inflated correlates directly to the amount of frustration they will likely experience.
Take the forex market for what it is; an on-going price determination arena for exchange rate prices between currencies. Trade off price action analysis and you will be analyzing the market at its core level and eliminating a truck load of mistakes that result from over-analyzing and over-use of lagging indicators. Employing a simple to understand yet highly accurate and adaptable trading method such as price action analysis will make a huge difference in any trader's forex experience.
Remaining calm and objective while trading the forex market is paramount to long-term profitability. When you trade with price action setups you can patiently wait for your setup to form and only take the most well defined trades that meet your specific criteria. Having a method that reflects all variables in the market such as price action analysis allows you to be confident in your analysis and remain aware of the fact that there is no need to analyze every economic report or indicator available. Often time's traders get caught up with making up signals when they really are not there or trying to guess what direction the market will move as a result of an economic news release. One of the great things about price action is that you don't need to guess or trade off the news, you know what you are looking for and the setup is either there or it is not.
One of the most important revelations that some traders make but few find out easily is that forex trading does not have to be complicated or frustrating. Many traders mistakenly believe that the more technically complicated their method of trading is the more money they will make. In fact, the best traders in the world generally trade off pure price movement or by reading tape. In the book "Reminiscences of a Stock Operator" the depiction of famed trader Jesse Livermore trading off price movement via tape reading is very similar to pure price action trading. The emotional desire to make trading insanely more complicated than it needs to be is related to our need to feel important or to stroke our egos. Fortunately there is no room for egos in the forex market, and generally speaking the degree to which a trader's ego is over-inflated correlates directly to the amount of frustration they will likely experience.
Take the forex market for what it is; an on-going price determination arena for exchange rate prices between currencies. Trade off price action analysis and you will be analyzing the market at its core level and eliminating a truck load of mistakes that result from over-analyzing and over-use of lagging indicators. Employing a simple to understand yet highly accurate and adaptable trading method such as price action analysis will make a huge difference in any trader's forex experience.
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