There are so many forex strategies out there on the market, but none as simple, profitable and satisfying to use as price action. In fact price action is so simple and profitable that the strategy can be used no matter what you trade â€“ be it eminis or the stock market. But what I use it for is forex. It's such a great tool, and has really taken the guesswork out of my trading.
If you've read 'Trading in the Zone' or one of the many other books on trading psychology then you'll know the importance of taking emotion out of trading, and using your system without hesitation. Well the hesitation was my problem, and I would start to stress out so much about all the lines and boxed and colours, and I'd forget what they all meant... It was a nightmare, it really was. I was stressing so much about it I lost more than sleep, I lost money and that's a fact.
A price action success story
Every trader knows that if your head is not right then your trades are not going to be right, and that was my problem, it just crept up on me too and suddenly I realised that I had made what had been a joy a job. So when I used to do my trades I was enjoying it to start with, but the more I learned, the more lines appeared on my charts until they looked like the morning after New Years Eve â€“ with streamers everywhere and total mess and confusion. But the confusion was a good thing in the end â€“ despite everything, because if I hadn't been that confused and frustrated, I would not have searched and discovered price action.
Price action trading is the best way of looking at a chart, and knowing right away if there's a trade coming up or open right now. It's so simple, and involves only a naked chart of your favourite currency pair (or stock or whatever you're trading). You may wish to draw one or two horizontal lines to aid clarity â€“ not too many though. The next step is to gain a little knowledge about support and resistance through a forum, book, or trading course and off you go â€“ you're trading with price action!
It's not hard, in fact, it's obscenely easy and turned my trading results and my life around. I'd much rather trade by just glancing at a screen and knowing if there's a trade there, rather than peering and squinting and stressing â€“ that's me, how about you?