How To Start Your Price Action Trading Journey
So you’ve acquired an interest in price action forex trading and you want to get started as soon as possible, but you aren’t quite sure how to begin, or perhaps you aren’t quite sure if what you are currently doing is getting you started on the right track.
Does this sound like you? If so, read on, because today’s article is going to take you step by step through the very beginning stages of learning to trade forex with price action, I am going to lay out in very clear terms exactly what you should do to get your forex trading career off and running to a solid start. Let’s get started…
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The first thing you need to do after deciding you want to learn how to trade the forex market, is find a trading strategy or trading setup that makes logical sense to you and that you know has worked for other traders. Once you find this strategy, study it intensely, focus in on the main concepts and don’t deviate from your chosen strategy; genuinely focus and embrace it.
Too often beginning forex traders will switch trading strategies after not really giving the current one they are using a serious effort. No trading strategy is going to bring you instant success without any study and effort, and the ones that claim to do this are almost certainly scams.
If you want to learn how to trade the forex market with price action strategies, then you need to truly commit to this trading strategy and embrace it completely, don’t get distracted by the myriad of other trading systems and strategies out there, you must put all of your focus and mental energy into mastering the art and skill of price action if you want to be a consistently profitable price action trader.
2. Begin your forex education and begin demo trading…
Now that you have picked your forex trading strategy it is time to find a quality source of forex trading education on the particular strategy you want to learn to trade with. Once you find a trusted and genuine forex trading education source, you should begin to absorb and learn from all the materials they offer. While you are studying this material you should be observing the charts, watching the price action, and generally studying how the concepts you are learning apply to real-time price movement.
You can open a demo account to get this process rolling; begin taking notes and logging any demo trades that you take which are in-line with the concepts of the forex trading strategy you are learning. You can record your demo trades in a spreadsheet or notebook, include a snapshot of the chart containing the demo-trade setup that you took, save it in a folder on your computer or print it out to use as a reference later on.
3. Begin to morph your demo-trade observations into a draft forex trading plan…
As you build your demo-trading track record and you get a decent amount of trades logged, you will begin to notice that some trade setups worked better than others in certain market conditions. Keep record of the types of setups that you see working most often, record the specific setup and the market conditions that it formed in (trending/consolidating/quiet/volatile), make sure you note all important factors in these records; the type of signal or setup, the direction of the market at the time of entry and exit, nearby levels that acted as turning points, note the time frame, and make sure you record the potential risk / reward that these setups are providing.
By doing this you are building the basic foundations of your trading journal that we discussed in step 2, this will become your actual trading plan later on as you progress and master the trading strategy you have chosen. This 3rd step of building your trading journal and drafting your trading plan is essentially just about you making and recording observations of things you see working in the market, according to the concepts you have learned in your trading strategy educational material. Record as much as you can and keep it all for later reference, this step is about learning to use the concepts of the trading strategy that you will employ, so figuring out what works and why, is very important in building your final forex trading plan.
4. Start trading with your draft plan…
Now that you have a draft forex trading plan, it is time to start logging your demo trades officially; as if you were trading them for real. At this point you are training yourself to stick to the basic concepts in your trading plan, during this period you will also be tweaking and improving your trading plan; adding the finishing touches. This means you will really be focusing on and recording the concepts that you see really working and that you understand clearly, this will work to solidify your trading plan.
There is nothing wrong with asking questions of your trading mentor or trading peers at this point, if you feel like you need to study more and go back and re-read or re-watch the educational materials that you learned from, then by all means do it, you want to make sure you thoroughly understand all the concepts now and that you are completely happy and confident with your trading plan.
5. Finalize your trading plan…
At this point you want to finalize your draft trading plan and trading experiences into a final forex trading plan. If you are a price action trading student your plan should focus on one or two core price action setups, after you finalize your trading plan you should repeat the process from step 4; log demo trades and keep up your study and discussion with peers and mentors. By this final step you will likely have simplified and condensed your thoughts and ideas from the earlier stages of your forex trading educational journey; at this point it is time to begin implementing and testing risk reward and money management techniques on the trading strategies in your trading plan.
6. Making it all work…
Implementing all of the steps above will not mean much if you are not using an effective forex trading strategy like price action. Learning to master the charts by gaining a thorough understanding of daily price dynamics in the forex market will allow you to clearly see what is happening in the market at any given point in time. The simple and realistic approach of learning to trade off naturally occurring price action setups is a trading strategy that has been effectively used for hundreds of years. Once you are properly trained in the unique and proprietary way that I personally have successfully traded price action for years, the setups that I teach will begin to “jump” off the chart at you; practically begging you to trade them. There is no confusion or doubt once you become a proficient price action trader, this is because you are trading with the first-hand data of the market; pure price action.
39 Comments Leave a Comment
hi i am new to forex. i was looking for. the right foundation. neil l think you for providing that foundation.
I have been studying your course for a week now and have enjoyed it. Perfect practice makes perfect. I look forward to using your ideas as part of my trading took kit for many years to come. Thank you for your generous efforts.
Mr. nial thank you so much for this lesson,its exactly what i am looking for to keep moving.i guess exprience matters alot but gradually your lesson is giving me alot of confidence in my trading.thank YOU
I have read and studied so much over the last 6 months and my charts have Stochastics, RSI, Parabolic SAR’s on them as well as 3 EMA’s and at other times MACD, OBV, Volume Indicators etc none of which have made me successful. Its therefore a real pleasure to come across your website this last week that breaks everything down to a simple chart with clear and concise instructions as to how to trade. I will be trialling your advice on my demo account this week and then joining your course by the end of the month. Im looking forward to making my life a whole load simpler and more successful! Thanks again
Have recently taken up Nial’s course. The above advice is just like the course clear precise and no Bull s**t. For those newbiews like me eager to get trading. Watch and learn first from Nial. The key to sucess is simply Patience patience patience!
Your educational gems are just that, Nial, they are gems. I had difficulty finding good price action information when I first became interested in trading. So, I ventured out and looked at everything. After ‘playing around’ with different systems and indicators for more than a year now, I’m back to pure price action trading and I love the material that you present. Thank you so much.
I think this article is awesome, being a newbie this makes sense in the direction I need to take, and the steps in which to do this.
Thank you for your shared knowledge, I recently joined your course and I’m so glad I did, your teaching method is so easy to understand.
Looking forward to more articles for newbies.
Thank you Nial, have a great week. :)
All you need is one thing that works.
another excellence article God bless you
Thanks for offering these special training, i will try to follow it throughly.
Nial, Congrats man! God has definitely blessed you with a great gift of giving and teaching. If this was someone else they would keep all this info and make the money themselves but you try share this, you are an unselfish person. God Bless you for that! I have been following your website for a while but haven’t been able to get membership access. I am trying to get this before the month ends. wish you the best this year…keep up the great work man, ……..from NJ….Rudy
Another great lesson Nial, as always much appreciated, thanks Mike
Thanku so much for continuing to share your knowledge & experience.
I agree I have to commit to just one trading strategy and focus on it completely but I get distracted by other strategies and impatient waiting for the perfect setup.
You are making me see the market differently through price action & I have learnt so much for you. I really enjoy watching & reading your posts, thanks again.
Thanks, as always great lesson.
Thank you Nial
as many, this is a fantastic post. Your website is very helpfull. I have more than decided I want to buy your course.
Yes Mr. Fuller I will be rereading a lot of your articles this weekend. Just when I think I have patience and I do, I realize I don’t have enough. I haven’t open any doors or has a light bulb gone off and I have not been successful in my trades but I will stick to price action and your educational material and the method you teach.
Hi Mr. Fuller
When I received your Email with to days article, after reading the initial paragraph and before reading the article any further I wanted to express this to you. You have an uncanny, almost spooky way of being there for me with just the right article for the right time. Now I will read the remaining part of the article.
Hi Nail, This is a great lesson to start for beginners and those in market for long and yet has no concrete trading plan, its discipline that pays off, your articles are always inspiring. Hope to meet in the members section soon. Thanks
Thanks Nial, enjoy reading your lessons each week as always, helps me out a lot and keeps me on the right track
How To Start Your Price Action Trading Journey is the best I’ve seen from anyone. My intention is to take your course. However, I’ve been so busy traveling for work that I’ve been forced to waite. In general I like everything I’ve seen from you.
Its funny just to day I was just thinking along those terms and now you email me telling me the same thing.Now I know that
Im on the right track.Confirmation is always good.
Good stuff Nial. I started on my forex journey some ten months ago with your course. The bottom line is after wasting a lot of money, I realise your course is the best value for money anyone can get. Hope this will help other newbies starting this HARD road of forex. Keep up the good work. Thanks.
I am so fortunate to have found your website. I watched the free videos last weekend and then purchased your program 2 days later. Your course content is amazing and it works. I have used what I have learned so far to profit from 2 EUR/USD trades overbthe last 3 days. I am very new to the forex and I have never profited like that before. More importantly, I now see this whole thing completely different. I’m not guessing, I’m actually trading with confidence. Thank you so much Nial.
I agree with all the other traders. Since using your methodical price action have clarified myThanks so much muddled mind ie tried to to mix srategies. Fatal.
What a fine mentor you are.
For many years I have only had a two leg trading stool. My trading psychology and position sizing have come together but I was in the wilderness with a method to fit into my plan. An old sage once said, “When the student is ready the teacher will appear”.
You seriously have my attention.
great article Nial – Thanks again.
Great lesson, I have beeb studying PA for sometime now, just need to make it consistent.
As always, a great artical. Look foreward to developing a strat and having a go.
Great work, helps me a lot.
I have been in the markets for 11 years, including 3 years as a full time daytrader. After studying your videos and lessons, I am seeing price action WAY more clearly. Trend, plus S/R, level plus price action equals amazing high probability setups. I look forward to starting your course. Thank you soooo much Nial!!!!
Hi Nial, thanx for your support man. I only bought your price action course this month & i am currently busy with it….. for now i have one problem; when reading your material i seem to understand every setup but i still find it hard to see them as they build up on my chats. BUT I KNOW I WILL GET THERE SOON. Thank you again for your support….. Lindo
The best lesson I’ve ever read, and maybe the only way to constantly win in forex trading. Thanks Nial…
Thanks so much for your selfless effort. It always your emails which got first preference.
Reinforcment of this sort of approach is a must.
Your price action strategy has has been the instigating factor in my demo-trading success .As a matter of it is a great strategy.Hope to start a live trading soon.
Great stuff Nial. Just what I need right now. I setup a demo account with FXPro then started a 10-day experiment similar to what you did in your experiment with 20 trades on 5 major currency pairs. Pin bar as my first strategy. As a beginner, the principles and strategies seem straight forward but its not as easy as I thought to setup a trade etc. (but I will get used to it and better). I’m pleased to say that after several trades over the past three days I struck a 70 pips profit ($210) on the eurusd after losing the first 9 trades. I used your risk2reward method to setup this trade and it worked brilliantly. Fabtastic mate thanks to you. Its like a light bulb has been turned on!
Excellent post, Nial, especially the parts regarding the creation of a trading plan. This is one area I think most traders neglect, yet it is so important. Thanks.
As always, great content. I thorouhly enjoy your insight and am always happy to see your name pop up on my incoming email.
Thanks for the feedback Bill, enjoy the content, and please “pay it forward”, “share it with others” ..