• Price action reflects all market variables
Many traders get caught up in trying to interpret global economic and news events. They try to “figure out” how these events will affect the markets. What these traders fail to understand is that everything that happens that can affect a market gets reflected in the form of price action on a “naked” price chart. So, by simply learning to trade Forex price action you are also learning to interpret the results of all variables that have affected a market. There really is no point in guessing what “might” happen based on some upcoming news release because the market might end up moving in the opposite direction anyways. This is where we the phrase “buy the rumor sell the fact” comes from.
When you learn to trade Forex price action you are learning to interpret and trade the reactions of all market participants to all variables that affect price. So, there is no need to confuse yourself by spending countless hours trying to figure out what “might” happen in the market; just learn to read the price action and it will provide you with all the clues you need to develop an effective and easy to use Forex trading strategy:
Check out this video on trading Forex with Price Action:
• Successful Forex trading starts with simplicity
Most aspiring Forex traders vastly over complicate the entire process of trading. They try trading with lagging indicators all over their charts, Forex trading “robots”, or any number of other inflexible and ineffective trading systems and strategies.
The truth of the matter is that there is one skill you must learn before you can become a successful Forex chart technician; reading price action. Even if you decide to use another trading strategy or system other than price action strategies, you will still need to an understanding of how prices move and how to read this movement. Investing in an effective price action trading education early on in your trading career will pay for itself many times over in the insight and knowledge of price dynamics that you will obtain.
When you learn to trade simple trading strategies like price action, you pave the way for a simple and stress free trading experience. If you can also manage to control your emotions and not over-trade or over-leverage your trading account, you will find great success with simple trading strategies like price action. There is just no need to make trading more difficult than it already is by clouding up your charts with tons of lagging indicators or trading robots. Stick to the basics; learn to trade the natural and “core” price movement of the market by learning to trade Forex with simple price action trading strategies.