It will do you a world of good to simplify your trading strategy, if you are just getting started in Forex trading or if you are a struggling trader who continues to be around a while. Trading the market is not really a difficult job in and of itself. What's troublesome is handling your emotions and staying calm and objective enough to make the best trading choices. Truly, this really is where most traders screw up and is because they can't manage their emotions effectively; most of them lose money. Part of handling your emotions effectively is having a trading strategy or process that's simple to comprehend and implement but that's also successful. Many traders try and trade with various lagging indicators throughout their charts, this only works to confound them and gets them in a state of steady over-analysis and temptation (to trade).


You will discover the raw cost activity of the chart actually shows you everything that's happening in that marketplace, if you boil down any marketplace to its center. What I mean is that if you simply learn to analyze and deal the market based only on its cost movement, you are trading the end result of all variables that impact a marketplace. Everything that occurs in the world that changes a market's cost is represented on the chart via cost activity of a marketplace. Hence, through cost action trading, a trader can make exact trading choices that are not determined by any secondary analysis tools like indicators or trading "robots".


It's the clarity and simplicity of trading with cost activity that allows a trader to trade any market state, whether it's trending or combining, and also this flexibility of approach is very important. Many "robot" trading systems or rule-based index procedures are only relevant in one marketplace state, and they will typically lose effectiveness over time as the marketplace structure changes. One thing you can be certain about as you trade with forex price action trading strategies is what the structure of the marketplace resembles or you will consistently be able to read and deal the marketplace irrespective of what state it is in. Now, that's never to say there will be a trade set up that is valid regular that's 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-likelihood set up to trade.