What Are The Best Forex Trading Strategies
Forex trading strategies come in many different varieties, and it really is up to each individual trader to pick the one that works best for them, while taking into consideration things like how much time they have for trading, how passionate about it they are, and how much money they have to start trading with. An important fact to remember early on in your forex trading career is that the particular forex trading strategy you implement is not nearly as important as how you manage your risk and your emotions, and how disciplined you are to remain patient.
Two different traders can use the same exact forex trading strategy, yet one of them will make money and one of them will lose money, this seems like a curious notion, but when you consider the fact that the success or failure of any given forex trading strategy ultimately depends on the mindset of the trader trading it, it really starts to make perfect sense. The lesson to take away is that forex trading strategies are not nearly as important as the mindset of a trader, this is why one trader can make money and one trader can lose money while both using the same forex trading strategies.
• Complicated or expensive forex trading strategies are not necessarily effective or better
Just because a forex trading strategy looks good, or sounds good, or because it costs a thousand dollars to obtain, does not mean it will help you make money, in fact it may even inhibit you from making money. Using overly-complicated forex trading strategies that are heavy on lagging-indicators and other unnecessary nonsense typically confuse traders because all they really do is invite analysis-paralysis to set in. The more variables one adds to their forex strategy, the more likely they are to over-think a trade setup or second guess themselves. Simply put, to be a consistently profitable forex trader, you have to have confidence in yourself and in your trading strategy, if you constantly second guess yourself because the forex trading strategies you use have too many bells and whistles clouding up your charts and your mind, you aren’t going to build your trading account very quickly, if it all.
Since the particular forex trading strategies you use to navigate the forex market are not anywhere near as important as how you think about the market and how disciplined you are, it is best to use simple forex trading strategies that make use of natural price chart dynamics and that don’t give you headaches from trying to decipher what a multitude of different lagging indicators are trying to tell you. Using simple trading strategies like learning to trade off pure price action setups, can actually help you remain focused and level headed because you don’t have any unneeded variables confusing you or causing you to over-analyze trading scenarios or setups. Many traders simply cannot accept the fact that their forex trading strategies do not need to be complicated, or look technically difficult to understand when they show other people, they erroneously believe that making money in the markets should be a difficult mathematical equation or require some magic piece of computer software, this simply could not be further from the truth.
• Higher time frame forex trading strategies
When you trade with a forex trading strategy like price action, you can make use of all time frames, but the higher time frames are where trade setups begin to take on a higher degree of accuracy on a more consistent basis. This is because higher time frames, like the daily and weekly charts, and also the 4h chart, work as “filters” of the lower time frames, filtering out the normal daily market “noise” of the lower time frames to show you a clearer picture of what price did over a period of time, rather than trying to decipher this picture from looking at a 1hr chart or lower.
Many beginning traders make the mistake of getting caught up thinking that by analyzing the lower time frames and using short-term forex trading strategies they will find more trading opportunities or get closer to the “real” market movement. This is simply an idea born out of greed and ignorance, all that analyzing lower time frames does is induce over-trading and cause your overall winning percentage to go down. This is because traders like to manifest trade setups on the lower time frames, that are not actually high probability setups, it’s just a natural result of the lower time frames having “noise” or meaningless price movement, most of this market noise is filtered out on the higher time frames, and this means trading the higher time frames will improve your overall market accuracy while requiring far less time and effort on your part. Using price action forex trading strategies you can make excellent use of the higher time frames simply by using a plain vanilla price chart with no messy indicators.
• Forex trading strategies education
Learning a forex trading strategy can be an intimidating task if you don’t seek the help of a professional trader. Many professional traders offer a lot of good free forex training material in the form of forex training videos, forex training articles, and more, this can be a very good place to start. If you feel like you want a more in-depth forex trading strategies education you can take a forex trading course, just make sure it is a reputable one and the author is someone who seems genuine and who seems like they know what they are talking about. Preferably you want to learn to trade forex from someone who is actually a trader, otherwise you are attempting to learn a forex trading strategy from someone who is not qualified to teach you how to trade. This would be like taking your car to the dentist to get fixed; it just doesn’t make sense.
Keep in mind that not all forex trading strategies are going to be useful, you can typically tell if a particular forex trading strategy is a scam or not by doing some research on it via the internet. You want to stick with classic forex trading strategies, like price action, candlestick patterns, classic technical price chart patterns, trend trading, break out trading, retracements, and other “classic” technical chart analysis techniques. The method taught on this website of price action analysis, is a classic method that has been around for centuries but with many unique variations. The variation taught here is one that head trader and Coach Nial Fuller has perfected over his years as a professional forex and equity trader. So, by learning the forex trading strategies on this website, you can rest assured you are learning strategies that have worked for Nial and for many other traders over the years.