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Nial Fuller

Professional Trader, Author & Trading Coach

Foreign Exchange

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By in Forex Trading Tutorials Last updated on May 24th, 2010 | No Comments

Foreign Exchange

Trading the markets for profit can indeed be a difficult proposition to undertake. However, the foreign exchange market offers some unique opportunities to retail traders and investors who are looking to learn how to manage their own money rather than leave it to some of the greedy thieves at companies like Goldman Sachs and the like. The foreign exchange currency market provides great liquidity and 24 hour a day 6 day a week market hours so that you can take advantage of this liquidity at a time that is convenient for you. When you combine these factors with the availability of strong directional moves that are relatively easy to interpret through price action analysis, you have a very good trading instrument that is both flexible and easily accessible.

The foreign exchange currency trading market is full of opportunities each day that can effectively be taken advantage of by learning how to spot price action setups that develop within the course of daily price movement. To the trader who is trained in the art and skill of price action analysis, these setups will begin to “jump” off the chart at you each day as you become better at spotting them and learning how to trade them. Becoming a price action trader will very likely be the best thing you ever do for your trading account because price action trading is simply the most logical, effective, and easy way to learn to trade the market.

Trading the markets is often over complicated by beginning traders because they get overwhelmed with the vast amount of trading information and products that are available on the internet. One thing to keep in mind is that many of these products are just scams from people who are failed traders, thus they offer super-complicated trading systems that no one can understand, these systems might sound fancy and look good but don’t offer any new insight into trading the market. Foreign exchange trading does not need to be a complicated endeavor; the market provides clues to its impending direction via simple price action setups that you can learn to interpret effectively. Once you learn to analyze price action setups within the foreign exchange market you can then employ a simple “set and forget” style of trading that through use of higher time frame charts will enable you to trade relatively stress free and on any schedule.

There are many advantages to trading foreign exchange over other markets. More specifically, you can start with as little as $250 as a foreign exchange trader, whereas in other markets you typically need at least $1,000 to open a trading account. Many foreign exchange currency brokers now have micro-lots which essentially allow you to trade a very small amount of money, as low as 1 cent per pip. This makes it reasonable to start with a smaller account because you can still effectively manage your risk while learning to trade with real money. There are certainly risks involved with foreign exchange market trading, this is an inherent part of trading any financial market, however through controlled usage of leverage and using simple price action setups, one can dramatically improve their chances of success in foreign exchange currency trading.

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About Nial Fuller

is a Professional Trader & Author who is considered ‘The Authority’ on Price Action Trading. He has a monthly readership of 250,000+ traders and has taught 20,000+ students since 2008. In 2016, Nial won the Million Dollar Trader Competition. Checkout Nial's Professional Trading Course here.
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