Is It Time To Change Your Forex Trading Strategy?
Today’s article is going to be a little different. I’m going to get ‘personal’ with you guys today and help you honestly decide if your current trading method is actually working for you OR…if it’s well and truly time for you to reconsider your trading approach and change your current beliefs. For some of you, this lesson could be the turning point in your trading career. It’s my goal to help you avoid mental and financial destruction.
I’ve been running Learn To Trade The Market for over 5 years now, and sometimes it’s easy for me to forget that many traders who read this blog are not necessarily ‘sold’ on our way of thinking , nor are they even following the strategies and philosophies taught here. Some of you are new to trading and some of you haven’t traded on a live account yet, whereas some of you have been trading for a while and are still quite lost on your trading journey.
My trading methods are for people who are really passionate about trading and who will still be here in 10 years…we can’t help everyone, especially those with unrealistic expectations of what trading can provide for them. However, if what you’re doing now is not working for you after genuine research, study and commitment, and it’s just confusing you, frustrating you and doesn’t really seem logical, then I would like take this opportunity to ask you to potentially change your way of thinking and convert yourself into a different kind of trader…
Commitment can work for or against you
You might be reading this blog regularly, but you might also feel committed to another trading strategy or idea or sold into a different way of thinking about the market, and I guess not all of you are going to take my word for it that price action trading and the simplified trading approach that we believe in, can work for you.
Some of the most ridiculous methods that you might have been exposed to in your trading career so far include, Elliot wave, Fibonacci, Indicators that just move up and down with price (really what’s the point?!), Harmonics, Fractals, Stochastics, and many more. You don’t have to take my word about the ineffectiveness of these haphazard trading methods, but come back to me in five years when you’re still ‘bleeding chips’ and let me know how you’re doing.
I know that experimenting with different trading methods and learning which you like and don’t like is a natural part of learning to trade, indeed, even I tried my fair share of other methods before I discovered the simplicity and effectiveness of price action. However, what I want you to understand is that you may be at a point where changing your trading method is the best thing you can do for your trading. We are creatures of habit, and it can be hard to break our habitual trading routines and our commitment to a particular trading method. But you have to sit down and turn off your computer for a moment and really consider if your trading strategy or system might indeed be part of (or most of) the reason you are not making consistent money in the market.
The definition of insanity…
Albert Einstein is famously quoted as saying “Insanity is doing the same thing over and over again and expecting different results.”
I am not here to get you to buy anything, and this is not just ‘another’ trading article…I am trying to get you to think today, long and hard about what it is you are doing in the market and whether or not it is working for you.
Consistency in executing your trading strategy, practice and belief in your method are very important things that are a requirement to trading success, but if you’ve gotten to a point where you’re hitting the proverbial ‘brick wall’ in your trading…walking in circles or chasing your tail in the market…it clearly means you haven’t found the method you should be trading.
The point is this, if you what you’re doing is not working then you need to change it. I have been trading price action for 12 years and it works very well for me and thousands of my members. I cannot guarantee that it will work for you (due to differences in each trader’s trading mindset) and I’m not saying it’s the “Holy Grail” of trading strategies, but I can guarantee that price action trading is simpler and much more logical than any other trading method or system out there.
I’m challenging you…
Today, I am setting up a challenge to any of you reading this. The challenge is simple: Give price action trading two weeks and see if it doesn’t make more sense than how you’re trading now. Prove me wrong. Read my free trade setups commentary for 2 weeks and then come back to this article and leave me a comment. I want you to prove to me that it’s not simpler than Elliot Wave, Stochastics or whatever other “hocus-pocus” method you might have the unfortunate feeling of commitment to right now. Read my free commentary each day, followed by at least one of my trading videos and at least one of my trading articles, then after two weeks of this leave me a comment on this article or send me an email with your thoughts.
Price action trading
Here’s a quick list of some of the main reasons why price action trading just makes sense and why you should try it:
1) It’s easy to understand and it’s simple. Anyone who follows my blog knows that I believe in a minimalist trading approach and that less is more in trading. Price action is the best way to trade in a simple and minimalist manner, there’s no mess on your charts, no confusing and contradicting indicators, just raw price action, as natural and organic as trading can be.
2) It works on all time frames. You can use price action on any time frame. I recommend higher time frames like the 4 hour and daily charts, but it can be used on your favorite time frame of choice.
3) It works in all markets. Price action is universal to all markets, I recommend major Forex pairs and the more liquid stock indices and commodities, but you can use price action to trade the markets of your choice.
4) It’s the most stress-free way to analyze the charts, and maintaining your composure in the market is a critical component to long-term trading success. If you are constantly frazzled and stressed because you can’t easily interpret the trading strategy you are using, this is obviously going to contribute to emotional trading mistakes which are easily avoided by un-complicating your trading method and mindset by using price action.
5) No more trying to line up multiple indicators and figure out what they are saying, once you master price action trading you will know if there’s a setup worth trading or not.
6) Price action trading reflects all news reports and fundamental variables that affect a market. Everything that moves a market can be analyzed and made sense of simply by learning to read a market’s price action.
7) Price action trading has literally been used since the 1700’s when Munehisa Homma first started using candlestick charts to predict rice prices. Many methods and systems have come since then, but price action trading is the only one to have withstood the test of time and still be in use today, there obviously is a reason for this….because it is simple and it works.
8) Even if you don’t make price action your primary trading method, you still need to understand what it is and how to use it. Markets at their very core are modes of determining “fair value” for a currency exchange rate, commodity, stock, etc…thus if you do not understand how to read the price changes in a market, you are skipping out on the very foundation of technical analysis and indeed of trading in general. I only trade with price action, but even if you choose not to make it your only trading method, you will need to understand it in order to make whatever method or system you do end up using, better.
I know that not all of you are ready to take it the “next level” and really dig your heels in and learn my advanced price action trading strategies, this is fine. If you feel like you’re in this category, then I ask you to keep studying my lessons and get yourself more familiar with the basics of price action trading.
For of those of you who are ready to take action and commit to something new, it’s time for you to seriously consider becoming part of our 12,000+ strong members only price action trading community and study the simple yet powerful strategies I teach in my forex trading course.
25 Comments Leave a Comment
Price action is force! And it works! Put all indicators and fundamental analysis in the garbage.
Of course it works and very very nice, I was just casual checking few days or weeks two pairs and enterd patiently for high probability obvious setup on daily and 4h and result was significant movement in my direction!
I have taken the challenge, and it is so true what is told in the article, althoug i haven’t mastering all of it.
I’ll see that it’s making sense to my trading yet.
I have follow it with a demo account, because before going live trading i want to be confident with price action, thanks for keeping me on track.
Great motivation piece. Got me amped !
I dont agree with the comment about fibonacci as you can see everywhere those price levels being respected but great post for the rest of the material.
i just trade with PA and its work well…i never use other indicator include ema…at starting its bit difficult and our mind wont accept that…give so many reason and attract to our indicator strategy.But if avoid all confusion just focus to PA..we can make good changes in trading career…..
hi nial ive been an avid reader of your article,ive read and did not follow your advice so my account burn out,its a good learning experience for me. i have to control myself and check the profitable setup only. i miss alot of it and didnt follow you, but after i have saw this article and make that challenge it suddenly ligthen me up. the set up trade for audusd reach its near term resistance! simple and efficient…damn! excuse me for my language! i will follow every setup you will make so that i could be one of your students! kudos nial! trully you are a champion! and it shows in you name and personality!
Having bled many accounts from many strategies, I got sold onto price action after watching some videos and taking the course, decided to unlearn all I had learnt and hit the reset button in my trading by adopting niall’s price action strategies. Well so far I have witnessed a turnaround in my trading and and I am quite confident that I am on track now, taking on the market a small bite at a time!
GOOD since ive been using price action method i dont even fear any incoming news again thanks 4 ur great article NIAL
Don’t discourage the Gann, Fibonacci and Elliot Wave dudes too much…who else we going to take our money off ???
4 years ago I began trading learning different methods with price action being the obvious approach. Thanks Nial for your continued commitment discipline patience education and support with being my mentor since the beginning of my trading career.
Perfect article again. Thanks.
I have been following you for sometimes now and using Price Action on demo. It works! even in lower time frames
Thanks Nial,this article seems written specially for me… Im a member and my trading and my life has changed.
Thanks again great man!
You are a great teacher indeed. You could convince anybody in anything.
The core of my trading system is Elliott and Fibo, and I adore them both. But your brilliant articles (exellent in logic in style) strongly convinced me to try also the Price Action.
Thanks a lot.
Basically , when trading ,you are trading in history, the game has already been played, the closer you get to the first point of trade the better chance you have of success, indicators lag ,they cannot interpret the value of a candle, price action can, this gives you the advantage, it is then the traders interpretation of the price action that decides the out come. nice article Nials .
Yes, price action seems to work at times. As do other methods with indicators thrown in just to confirm your trading decision will be correct.
I like to have two EMAs and one SMA on the chart. But, for support and resistance ( I hate lines all over my charts). I use the Zig Zag on the settings of 2-1-1. Nice and tight.
Then the most important part of my trade is a deep breath, a very big Hope and then pray.
To me my trading seems more reading charts, going with the trends and guessing.
I completely agree with price action being key. However, I use Elliot Wave theory and it is working excellent for me. I will continue to use it. Fibonacci I use as well, and I find the two to go hand in hand. Price action will always be my core, but the other two; I find to be pretty useful. Switching from day trading to swing/position trading was my great turning point.
double thumbs up to Nial and i couldn’t agree more to this article
i was a victim of complicated stratigies til i found learn to trade the market, the price action method changed my perspective toward forex trading and to life also
Nial Fuller is a great man i really do respect him so much although i never met him in person but you can tell alot about him through his wonderfull articles
Godbless you Nial and keep the good work!
Keep up the great work..
Learning new strategies now and again doesn’t really work in the business of trading. I think the best advice is to ask traders to develop, Master and stick to a strategy. The most important part of any strategy is understanding those little nuances that we most often ignore. This explains why a strategy creator will usually get better results with his/her strategy than those of us trying to learn or use it.
.. If you study price charts long enough, you will find patterns that will appeal to your eyes.
…Recognise, practice and master them.
a big thanks for your generosity, a good lesson to those who care
Getting understand the power of price action with constant risk and following one strategy at time. I know there might lot to know to get my skill to a new level.I really wanted to be try out by myself to see how the price action works for me……without taking your Advance course. It’s seems making lot of sense by trading with your method as I plan to get your course as soon as possible to upgrade my trading to a higher level…
Thanks as always…….
I’ve been a member for a few months and I’ve gotten more out of this course than most of the books etc that I’ve come across. The simplicity is key because it helps keep the mind clear. I’ve made vast improvements since I joined. The hardest thing is ignoring people still using other ways of execution, such as news (as implied above). I have subsequently deleted all forex news websites from my bookmarks! lol
Thanks for your constant education. I have been gaining a lot from your news letters especially some trading strategies you gave out for free. Price Action is the universal key to forex trading. However, indicators have been confusing me when I combined it with your forex Price Action. I will wipe out the stoichastic and let me take the challenge you have posed to us now. I will get back
in a month time. Thanks.
you are one of the best men around the world. good luck ! thanks for great articles. ;-)