It'll do you a world of good to simplify your trading strategy if you're only getting started in Forex trading or if you're a fighting dealer who continues to be around some time. Trading the market isn't really a difficult endeavor in and of itself. What is challenging is managing staying quiet and your emotions and objective enough to make the best trading decisions. Really, this really is where most traders screw up and is because they can not handle their emotions efficiently; most of them lose money. Part of managing your emotions efficiently is having a trading strategy or procedure that is simple to comprehend and implement but that's also effective. Many traders attempt to trade with an array of lagging indicators around their graphs, this merely works to confound them and gets them in circumstances of continuous over-evaluation and temptation (to trade).


You will find that the raw cost activity of the graph actually shows you everything that's occurring in that market if you boil down any market to its heart. What I mean is that if you simply learn to examine and trade the market based entirely on its cost movement, you happen to be trading the outcome of all variables that change a market. Everything that happens in the world that changes a market's cost is ultimately represented on the graph via cost activity of a market. Consequently, through cost action trading, a dealer can make exact trading decisions which aren't impacted by any secondary analysis tools like indicators or trading "robots".


It is simplicity and the clarity of trading with cost activity which allows a dealer to trade any market state, whether it's trending or consolidating, and also this flexibility of approach is essential. Many "robot" trading systems or rule-based index approaches are only applicable in one market state, and they're going to generally lose effectiveness over time as the market structure changes. One thing you can make certain about as you trade with forex price action trading strategies is what the structure of the market resembles or you will consistently be able trade the market irrespective of what state it is in and to read. Now, that is never to say there will be a trade set up that is valid everyday that is worth risking your money on. However, if you learn to master cost activity strategies and are patient, you'll probably never go more than a few days without getting a high-chance set up to trade.