The Authority’ on Price Action Trading. In 2016, Nial won the Million Forex forex online quote rate strategy trading 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. In the example chart below, we can see a clean and simple price action chart with no indicators. If the power of simplicity in Forex trading was not clear to you yet, analyzing the charts above should make it more than obvious to you. I have seen many beginning and struggling traders try to trade with charts that look like the second one above with all the indicators on it. Once you accept the fact that chart analysis does not have to be difficult, it will help you to focus more clearly on the more difficult aspects of trading like remaining disciplined and managing your risk properly.
Conclusion: Now that you have a basic understanding of the why and the how of the KISS method, you can begin to work on practicing its implementation. This article is one of a kind. Though a newbie but the excitment is building up. And I will be part of this community proper.