The importance of finding a quality educational course or instructional site when first starting to trade the forex market cannot be over emphasized. So many aspiring traders get lost in the mess and confusion of various forex scams and so-called educational sites that it is no wonder most of them don’t move on to become successful traders. Developing a solid foundation to build your trading plan on that is continually relevant, simple, yet effective is extremely critical to any beginning forex trader’s success.
Building your forex trading plan on a foundation that consists of a high-quality education in price action analysis is the most effective route to take in order to achieve consistent profitability. Professional traders understand that the most important entry and exit signals are usually setup by a price action pattern occurring with a confluence of levels. There is no need to overlay lagging indicators on your charts; all they do is confuse you and hide the raw price data that has its own unique way of helping you map out possible future price direction. Once you learn how to analyze a price chart and make sense of price movement in the context of a trending or consolidating market you will have the necessary method to build a very profitable forex trading plan.
As a beginning forex trader there is no need to rush into buying some expensive piece of software or trading system that claims to show you the “secrets” of trading successfully. The biggest secret to successful forex trading is that there is no secret. You can make money consistently off a pure price action chart with no indicators and a hefty dose of self discipline. Once you have these two necessary ingredients you can then begin to implement specific entry and exit rules as well as an effective money management scheme. The reason why so many aspiring forex traders believe that trading is difficult is because they start out on the wrong path with a confusing trading method that is neither relevant nor necessary to making money in the FX currency market.
The most logical, effective, and simple thing that you can do to get started on the right foot with your forex trading is to educate yourself on how to trade using price action setups. All you need is a handful of price action patterns that are easy to spot and repeat themselves over and over within the market. Human emotion drives the forex market as well as other markets; humans are predictable creatures with a certain range of emotions that manifest themselves in generally the same way within the context of a financial market. There are specific price action setups that are visible on price charts from 50 years ago; price action analysis does not fade over time but actually becomes increasingly relevant. The skill of learning to identify price action setups can be acquired relatively easily through a professional price action trader. Once you acquire this skill you will notice a marked turn around in your trading performance and a huge difference in the way you view and think about the forex market.
Nial Fuller is a Respected Trader and Forex Coach. He runs a Forex Training and Education Website, Visit his site here Price Action Training Forex