Trading the forex market using price action setups can be a confusing task if you do not have a thorough understanding of what exactly price action forex trading is and what it involves. Many traders erroneously believe that they need to over-complicate their charts in order to make money in the forex market. One of the most significant concepts to make sure that you understand regarding price action forex trading is that it is so effective largely due to the fact that it allows you to simplify all aspects of your trading. If you start out using a method that is complicated it is going to spill over into your mindset and result in the emotional trading mistakes that plague so many traders.

What is Price Action Forex Trading?

Price action is essentially the “foot-print” of all financial markets. This foot print is evident on a “naked” or indicator-free price chart; a plain-vanilla price chart is all you need to make trading decisions based on this “foot-print” of money. There are specific price action setups that have been used for years by professional traders and that develop in the context of market price movement nearly every day. Price action analysis is an art and a skill, you can learn the skill aspect of price action forex trading from a comprehensive forex trading training course, however the art part of price action analysis is a reflection of your time spent demo-trading and live trading and how much knowledge you can take away from forex mentors like Nial Fuller.

What does Successful Price Action Forex Trading Involve?

It is this “art” aspect of price action trading that really separates the pros from the amateurs in the forex market place. The reason being is that developing your discretionary price action forex trading skills is what allows you to identify a quality price action setup from one that is not as high probability of a setup. Once you begin to fine-tune this discretionary process of distinguishing trade setups worth risking your money on from ones that are basically just a gamble at best, you become closer to making it as a full-time forex trader.

It is also this discretionary “art” aspect of successful trading that causes most aspiring traders to give up or eventually blow out so many trading accounts that they literally cannot afford to trade anymore. The issue arises because so many traders desperately want to “automate” or program the forex market, so that they can just sit back on the beach and press one button to make millions of dollars. Unfortunately it takes MOST traders years of trial and error, frustration, and lost money and time to figure out that trading simply cannot be quantified or programmed successfully.

The reason for this is that the forex market, and all financial markets for that matter, is simply a reflection of the aggregate beliefs of many human participants. So when one thinks about trying to program or automate the aggregate beliefs of millions of human beings, it becomes obvious just how futile this can become. This is exactly where price action forex trading comes in. When you learn how to interpret and read what a plain vanilla price chart is telling you, you are literally learning to interpret the most accurate reflection of this human aggregate belief structure. There is simply no better way to find a discernable market edge than to learn how to read the most uncluttered and clear representation of what all market participants think about a given security and this representation is of course price action. Once you learn the necessary skills involved in price action forex trading, you can move on to concentrate on practicing and fine-tuning your chart reading so that you get a better understanding of price action forex trading and how to properly apply discretion, for it is this discretionary level of trading that is synonymous with consistent forex trading profits.

To learn more about price action trading please check out my comprehensive forex price action trading course. – Nial Fuller