Trade Forex Like a Sniper…Not a Machine Gunner

Today’s Forex Lesson is “Awesome”. In fact, It’s probably one of my best trading lessons I have ever written. It took me at least 2 days of brain power and probably 20 coffees.  Please pay it forward, share it with others. Enjoy.
A sniper in the military has an edge over his or her enemy; their edge is unwavering patience, mastery of their weapon, and the ability to remain consciously in control of their mind and body for long periods of time in high-stress situations. We can apply these same concepts to Forex trading…
Forex trading is very similar…you need a trading edge (weapon), you have to master this edge, you need to develop and maintain rigid self-discipline and control, and you have to execute your edge flawlessly in the face of constant temptation to over-trade and over-leverage. Now, trading is nowhere near as stressful as war, but it still requires conscious control of mind and body.
Those traders who learn to pick and choose their trades wisely, trading like a Forex “sniper”, are typically the ones who succeed long-term, whereas those traders who act like machine-gun traders by shooting at everything they see (trading too much), tend to run out of ammo (money) very quickly and fail to accomplish their goals in the market. Let’s discuss how you can learn to trade like a sniper instead of shooting at everything (taking every trade) that comes your way…
• Accept that less is more in Forex trading
One of the things that we traders can learn from a sniper in the military is that in certain situations less is indeed more. Forex trading is definitely a “situation” where less is more. However, it is very common for beginning traders to feel that more is better; more Forex indicators, more trades, more analyzing, more money on useless trading robots, etc.
What is the result of such misinformed beliefs? The result is almost always over-trading; indeed, most beginning Forex traders are like machine-gunners; spraying bullets (money) at everything they deem to be a trade and likely causing more damage to their trading accounts than good. The first step that you need to make if you want to trade more like a sniper and less like a machine-gunner, is to truly accept that less is more in Forex trading.
Just like a sniper waits patiently for his or her pre-determined target to come into view; you need to learn how to wait patiently for your pre-defined trading edge to show itself in the market. As price action traders we have a very effective trading edge that allows us great opportunity to trade the market with sniper-like precision, and the daily charts provide the best “battleground” for us to execute our edge on.

• Higher time frames
As I mentioned previously, the daily chart should be your “battleground” for developing your ability to become a Forex sniper. Why, you ask? Because it is the daily chart that gives us the “highest value” or highest-probability targets when compared to any time frame below it. Weekly charts are also accurate, but they don’t give us enough targets each month and they are less practical to trade than the daily chart.
These targets are price action setups, and you should think of them as higher-value on the higher time frames, because in reality the higher the time frame the higher-probability the setup becomes. This is the primary reason that trading higher time frames drastically increases trading success. Think about it this way; a sniper is on a pre-planned mission to take out high-value targets that can change the course of a war, and in Forex trading you should be looking for the highest-probability trade setups that can have the greatest positive impact on your track record.
Machine-gun trading the lower time frames is not going to do anything but cause you to lose all your ammo or money a lot faster than you think. There is really no sense in ever trading any time frame below the 1hr chart since the value or probability of the targets or setups decreases dramatically as you move lower in time frame. You want to stick to the high-value or high-probability setups of the daily chart as much as possible, and especially while you are still learning to trade.

• Patience
If there is one thing that a sniper in the military definitely IS, it’s patient. Patience is like the “magic” ingredient that makes everything work for a sniper in the military, and it is also the “magic” ingredient that you will need to use if you want to become a Forex sniper. Most beginning traders lose money in the markets, and most beginning traders are also anything BUT patient. See the connection here?
There is a tendency for traders to want to “force” the issue of trading by manifesting signals that aren’t really there or by jumping into a signal that has not closed out yet. When it comes to money it is human nature to be impatient, this is otherwise known as greed, but if you don’t learn to become a patient Forex trader, you will never forge the type of overall self-control that it takes to succeed as a Forex trader and become a Forex sniper.

• Mastery of strategy
A sniper will train for years to sharpen and perfect his or her shooting skills, and a sniper knows exactly what their target looks like and pulls the trigger without hesitation. Similarly, you will need to “train” with the particular Forex trading strategy you choose to employ in the markets so that you know EXACTLY what you are looking for every time you open your charts. However, you will need to do more than that; you will need to truly MASTER the Forex trading strategy that you choose, because if you don’t master it, you will never achieve your full potential as a Forex sniper.
Mastering a trading strategy begins with education. If you choose to employ high-probability price action trading strategies, I can provide you with the Forex trading training you will need. However, you must put in the time and effort to learn and master it; I cannot do this for you. You need to be realistic about this, it will take time; it takes time to become a master at anything, and Forex trading is no different. But, if you put in the necessary time and take advantage of the insights discussed in this article, you will begin trading like a sniper sooner than you might think.
• Developing a sniper-like Forex trading mindset
Sniper-like Forex trading breeds confidence and discipline. The more you strive to trade like a sniper and less like a machine-gunner, the more your Forex trading confidence and discipline will improve. This is because you will be rewarded for patience, and as you start to see your patience pay off over time, you will want to maintain it.
It is the initial stages of developing a sniper-like Forex trading mindset that most traders fail it, usually because they do not understand the power of patience and discipline. It tends to feel better to be a machine-gun trader because you feel powerful and “in control”. The problem with this mindset is that you can never control the market, in fact, the more you try to control the Forex market the more it will actually control you. The only thing you CAN control is yourself by learning to trade like a sniper, and if you do this you will significantly increase your chances of success as a Forex trader.
Trading Like A Sniper is part of my ‘core trading philosophy’ that I teach my students. If you want to learn more about becoming a disciplined price action Forex “sniper”, check out my forex trading course and traders community here.

What Crocodiles Can Teach You About Forex Trading

Here in tropical Australia, the saltwater crocodile is a fearsome and intelligent predator known to wait patiently for days or weeks on end until unaware prey come to the water’s edge and become its next meal. Crocodiles are by many accounts the most successful animal that has ever lived; they’ve been around for about 200 million years and have out-lived the Dinosaurs, and they’ve evolved over time to become perhaps the most successful predator on Earth, next to humans.  Crocodiles are opportunistic predators; they’ve been known to learn the behavior of their prey and lie in wait for long periods of time almost to the point of starving, and then when the time is right they snatch their prey with confidence and precision.

In fact, it is quite common for people to swim with these animals for days or even weeks without any sign of aggression, until one day somebody goes swimming, fishing or even walking, and they never return. This demonstrates real-world evidence that one of the oldest and most methodical predators on Earth is also one of the most patient and disciplined that has ever lived. Darwin’s survival of the fittest theory certainly favors this creature; they’ve been around since Dinosaur times because their method of hunting and adapting is so successful. The salt water crocodile is perhaps nature’s ultimate “sniper”… it only needs to eat once a week or so because it makes high quality kills rather than a high quantity of low-quality kills.
As traders, there’s a ton of things we can learn from the crocodile, let’s discover some of them…

Crocodiles are a trader’s best role model

The crocodile is actually our best role model as traders; their behavior is really the perfect metaphor for how a trader needs to behave. We are without doubt predators, not just trading predators, but as humans we are naturally built and function as hunters. As traders, we must copy the crocodiles’ methods of hunting; we must be disciplined, patient, adaptable and methodical in our approach. Crocs have also demonstrated an ability to learn quickly and avoid risky situations as we will discuss more about later, these are also things that we need to do as traders.
Think of the crocodile…he’s big, fat, long and needs A LOT of protein in his diet to survive, to swim and to hunt. Is his energy best spent going around all day eating little bait fish which are easy to catch? Imagine how much energy he would expend trying to catch a high quantity of low-quality prey like that all day. If you have ever seen these crocodiles like I have in person, you will understand what I am saying; crocs are designed and have evolved to be patient “sniper” hunters…many little meals do not interest them as much as a big juicy nourishing meal does.
By trading less… our aim is to make a nice large “meaty” size trade that sustains us until our next trade. Sure we may have a few losses along the way to our big prize, but the goal here remains clear; waiting on the sidelines (or the shores of the river like the crocodile) to pounce on our prey and cop a huge nourishing meal. We don’t want to be running all over the pond or river looking for any small piece of meat or fish that we can find…we are going to wait it out and score ourselves a nice big juicy profitable trade (or in the crocodiles case, probably a kangaroo, a dog, or maybe even a human).
There is an expression in the English language that most will have heard at some point in their lives: “All good things come to those who wait”. This phrase is merely discussing the merits of being patient, possibly frugal, disciplined and well planned, but its implications are profound and very true for both the crocodile and the trader.
It may shock some of you to know that nowadays I may trade only 3 times per week or even less some weeks. You’re probably thinking “That’s not enough trades to make money”, I don’t blame you for thinking that way and it’s easy to think that way with most mainstream Forex websites pumping day trading and high frequency trading. But, my own personal experience is that it’s much more lucrative to wait patiently for high-quality trade setups than it is to stay glued to your charts all day and night trying to trade everything you can find.  The best trades are obvious, they almost “talk” to you and tell you to trade them, once you know what you’re looking for this will become apparent to you.
For definitions sake I would refer to myself as a swing trader and a trend follower. I attempt to capture the larger moves that occur over multiple trading sessions or possibly multiple days or weeks. In this way, I am very much analogous to a crocodile in my trading, in fact I might even buy a picture of a crocodile and hang it up in my trading office to remind me of how successful a predator the crocodile has been throughout history and most importantly, why it is so successful.

Crocs have a high strike-rate

It’s fairly safe to say that if a croc gets its jaws around its prey, the prey is not getting away.
Crocs have a good strike-rate because they are patient and wait for the “easy” opportunities and then act with confidence and speed…they don’t hesitate. Whereas a Lion might have many failed hunting attempts trying to catch a Gazelle or some other quick animal, expending a lot of energy in the process, crocs tend to have less “losing trades” or failed hunting attempts…because they don’t waste time or energy…they wait and wait and control themselves with precision until their prey almost walks into their mouth…then they feed.
As traders, waiting and being patient can increase your strike rate. Controlling ourselves is really all we can do as traders…we cannot control our “prey” (the market)…we can only conserve our money and wait patiently until our trading edge presents itself. This is how you get a high strike rate as trader, not by trading a hundred times a week in some futile effort to “scalp” the markets.

Crocodiles are good at avoiding risky situations; they learn fast

Crocs “…learn quickly and adapt to changes in their situation. They particularly learn to avoid dangerous situations very quickly”, according to the article The Extraordinary Lives of Crocs. The article went on to discuss that this ability of crocs to learn quickly and avoid dangerous or risky situations is yet another reason they’ve outlasted the dinosaurs and are still thriving today. Avoiding risk is one way that a species can survive over time and “win” the evolution battle of the fittest. Similarly, not taking on more risk than is necessary as well as learning quickly are two very important keys to becoming a successful Forex trader.
I have said many times before that risk management is KEY to becoming a profitable trader. Some traders don’t learn quickly like crocs do, instead they repeat the same mistakes over and over until they blow out their trading account. Even though we are clearly far more intelligent than crocs, we have a lot more emotions too, and these emotions often cloud a trader’s “gut feel” and cause them to hesitate, second-guess themselves and over-analyze the market. A croc does not second-guess itself…it’s simply such a fine-tuned predator that being patient, disciplined and executing with confidence are in built habits.
As traders, we need to learn from our mistakes, and fast, because money is on the line. Our version of “avoiding risky situations” is not over-trading and not risking too much per trade.

Conserving energy for the next kill

The crocodile waits for the big meal because it makes more sense to wait and conserve energy by eating a large chunk of protein less often. The croc conserves energy and time by eating this way and it also is one of the main things that have ensured the survival of crocodiles over hundreds of millions of years during many periods when food was scarce.
If you think about not interfering with your trades as helping to make you money, it might make it easier to do. I actually imagine that I am making money by not trading and by simply doing nothing, because by not losing money from over-trading and over-involvement…technically you ARE making money. A crocodile would probably eat less food overall if it was constantly running around trying to find small prey, the crocodile intuitively knows that by being patient and disciplined it has a better chance at getting a higher-quality meal. The crocodile “knows” itself and its own limitations and uses its strengths to its advantage. Indeed, the fact that the crocodile has been around since dinosaurs walked the Earth is evolutionary proof that the concept of patience and discipline most certainly pays off.
The crocodile intuitively knows that it needs to conserve energy and wait for a big kill, this patience is actually a “skill” for the crocodile and it’s also a habit that has developed and reinforced in crocs over millions of years of providing them with large tasty meals. Longevity is critical to a trader; we need to conserve the money in our trading accounts so that when the “easy prey” or obvious trades come along we can get the most out of them. If we go around trading everything we see we will shrink our trading accounts and we won’t have enough money in our accounts to get the most out of the high-probability signals. Just as if a croc ran around all day trying to catch smaller prey it would not have the energy or positioning to grab the bigger and better prey.

Crocodiles are highly adaptable

Crocodiles learn quickly and adapt to changes in their situation. This is a large part of how and why they have survived for millions of years whilst many other animals have become extinct during that same time. According to the article I mentioned earlier ‘The Extraordinary Lives of Crocs’; “…crocodile researchers often have to change their capture techniques because it’s very hard to catch them [crocs] with the same trick twice.”
Many researches think that the adaptability of the crocodile, including its ability to “ignore” hunger for long periods while it waits patiently for the “perfect” feeding opportunity, is one of the main reasons they survived whatever killed off the dinosaurs. It’s clear that the crocodile’s ability to adapt to its environment and to changing situations is one of the reasons it has survived and thrived for millions of years.
As traders, we have to adapt to changing market conditions, and as we’ve already discussed we need to have ice cold discipline to only trade when our “prey” is ripe for the taking. One of the beautiful things about price action trading analysis is that it’s an inherently adaptable trading strategy. Whereas many trading systems are rigid and make you stick to a strict set of rules or conditions, price action analysis gives you more of a “framework” to work off of when analyzing the markets and this framework can be used to trade any market condition  as well as adapt to changing market conditions.

 “Crocodile trading” should become a habit for you

In the past, I have written about the value of patience and how it is the core attribute of some of the greatest traders that have ever lived. I have put forward the argument on many occasions that ‘less is more’ and I think in today’s market conditions that statement is even more relevant. Over the years I have written countless articles which discuss how to implement a patient trading approach. My favorites being, “Trading like a sniper and not a machine gunner” and “The minimalist guide to trading”.  Hopefully many of you are really starting to connect the dots by now and have discovered first hand just how powerful these concepts are and what they can do for your overall trading performance and profitability.
It’s almost funny that it’s taken me until now to write an article on what traders can learn from crocodiles considering I live in Australia where crocs are world-famous and plentiful. Furthermore, almost every behavior of a crocodile directly parallels what it takes to be a successful trader, the similarities are almost uncanny. The crocodile is nature’s proof that “less is more” and that waiting patiently for the higher-quality opportunities is a recipe for success. This recipe has kept crocodiles thriving on the Earth for 200 million years, and it can and will help you thrive in the markets if you use it properly.
It’s critical for the crocodile to understand its prey and to know where to look for it and remain calm and patient until it arrives. As traders, we have to know what our trading edge looks like and where to look for it and then control ourselves enough to not over-trade before it arrives. If you want to learn more about this “crocodile trading approach” and fully understand your “prey” (price action strategies) then checkout my price action trading course. My trading course and other members’ content essentially models and teaches you how to “trade like a crocodile”; in a patient and methodical manner with a mastery of your “hunting” skill.
If you enjoyed this lesson, please leave a comment below, click the ‘like button’ and share it with friends.
Good trading, Nial Fuller – “The Croc Trader”

What is Forex Trading , Forex Trading Explained

Guide to forex trading, what is is, how to trade it, and how to get started.
 
 
What is Forex Trading? – An Introduction to the World of Currency Trading

A Brief History of the Forex Currency Market

The creation of the gold standard monetary system in 1875 marked one of the most significant events in the history of the Forex currency market. As countries each attached an amount of their currency to be equal to an ounce of gold the changing price of gold between two currencies became the first standardized means of currency exchange in history.

World War I brought with it the breakdown of the gold standard due to the major European powers not having enough gold to exchange for all the currency that the governments were printing off at the time in order to complete large military projects. The gold standard was used again between the wars, but by the start of World War II most countries had again dropped it, however gold never lost its spot as the ultimate form of monetary value.

In 1944 the Bretton Woods System was implemented and led to the formation of fixed exchange rates that resulted in the U.S. dollar replacing the gold standard as the primary reserve currency. This also meant that the U.S. dollar became the only currency that would be backed by gold. In 1971 the U.S. declared that it would no longer exchange gold for U.S. dollars that were held in foreign reserves, this market the end of the Bretton Woods System.

It was this break down of the Bretton Woods System that ultimately led to the mostly global acceptance of floating foreign exchange rates in 1976. This was effectively the “birth” of the current foreign currency exchange, although it did become widely electronically traded until about the mid 1990s.


What is the Forex Market used for?

Forex trading involves transactions in which one party purchases a quantity of one currency by paying in a quantity of another currency. The Forex market is a global decentralized financial market for the exchange of currencies. Around the world various financial centers act as hubs for trading between a wide range of different types of buyers and sellers 24 hours a day, except weekends. It is the foreign exchange market that determines the value of one country’s currency relative to another.

The primary reason the Forex market exists is to facilitate international trade and investment by giving businesses the ability to convert one currency into another. As an example, a U.S. business can import goods from Japan and pay in Japanese Yen, even though the business is based in America and operates in U.S. dollars. The Forex market also provides a medium for speculation which works to add deeper liquidity to the market, making exchange rates less volatile. The “carry-trade” is facilitated via the Forex market, this is a trade in which investors can buy high-yielding currencies against low-yielding currencies and profit from the higher yielding interest rate.

What are the Benefits of Trading the Forex market?

Some of the many benefits of trading the Forex market include the following:

• Trading can be done from anywhere in the world with only an internet connection and a computer needed.

• Huge trading volume, this leads to dense liquidity making it easier to get in and out of positions at the price you want.

• Flexible trading hours; continuous operation 24 hours a day 5.5 days a week.

• Greater availability of leverage to enhance profit margins relative to account size than compare to other markets.

• Fewer variables to consider as compared to stock or commodity trading.

• No inherent market bias like the bullish bias stocks, this means greater opportunities to profit from the volatility in both rising and falling markets.

• Ease of accessibility and low start-up costs.


Advantages like the ones listed above and others are the reason why the Forex market has been referred to as the market closest to the ideal of “perfect competition”. According to the Bank for International Settlements, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, as of April 2010 a growth of approximately 20% over the $3.21 trillion daily volume recorded in April 2007.

Who Trades Forex?

• Large banks, central banks, and other financial institutions.
• Governments
• Currency speculators / Retail traders / brokers
• Institutional investors
• Corporations involved internationally
• Travelers / Tourists

Most Traded Forex Currencies

The most traded currencies by percentage of daily share as of April 2010 are:

1. United States dollar = 84.9%
2. Euro = 39.1%
3. Japanese yen = 19.0%
4. Pound Sterling = 12.9%
5. Australian dollar = 7.6%
6. Swiss franc = 6.4%
7. Canadian dollar = 5.3%
8. Hong Kong dollar = 2.4%
9. Swedish Krona =2.2%
10. New Zealand = 1.6%

How are Forex Rates Determined?

• Economic factors – These include: economic policy made by government agencies and central banks, and economic conditions as described by and through economic reports as well as various economic indicators.

• Political conditions – International, national, and regional political conditions and events can have a large impact on the Forex currency markets.

• Market Psychology – The psychology of market participants can influence the foreign exchange market in numerous ways. Ultimately all economic variables are expressed through the filter of the human brain / trader psychology

• Trading Algorithms – Electronic trading based on algorithms (or computer / robot trading) is become more and more popular, as a result algorithmic trading is starting to have a large effect on Forex currency rates.

What is Forex Trading?

Forex trading as it relates to individual retail investors and traders is the speculation of the future rate of a particular currency pair. For example, traders who think that the rate of the EURUSD will go up might may decide to buy, or go long, the EURUSD in the Forex market. If a trader thinks the currency rate or price will go down they will sell, or go short, the particular currency pair they are interested in. All Forex trading done by retail traders and investors must be facilitated by a Forex broker, there are many broker’s available on the internet, here is a list of the brokers we recommend here at LTTTM: Forex brokers.

Typically, Forex trading strategies can take a number of different forms, and it is really up to the individual trader to pick the method that works the best for them. However, these are a few of the more popular Forex trading methods:

• Indicator based trading methods – these trading methods involve analyzing “lagging” indicators to try and predict future price movement of a Forex currency pair.

• Robot trading systems – Forex trading “robots” have recently become quite popular on the internet, these robot trading systems are essentially computer programs that tell you exactly where to enter and exit and drastically reduce the need for human interaction.

• Scalping – This is a short-term trading strategy where traders jump in and out of the market quickly for small profits.

• Price action based directional trading – The trading method of price action is a Forex trading strategy that involves analyzing a “clean” or indicator-free price to chart make one’s trading decisions. The primary advantage of price action trading is that it makes use of the ‘core’ price data of the market; price, therefore it removes the clutter and confusion that other trading methods can bring, leaving your mind clear and calm

Learn Forex Trading

How to learn forex trading for free??.
urrency Trading is the world's largest market consisting of almost trillion in daily volume and as investors learn more and become more interested 

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 The forex market is a continually flowing river of financial opportunities. Each week the market presents opportunities for savvy trader to take advantage of in combination with using leverage to multiply their money. However, it is no easy to ask to trade the forex market with consistent success, this is reflected by the fact that the majority of traders give up, usually out of frustration from losing so much money.

So, as you learn forex trading, you must understand some basic truths that many novice traders either are unaware of or that they simply ignore. Some of the truths you must learn are; over-trading and over-leveraging are the two quickest ways to lose all your money, simple forex trading strategies are the best, elimination of emotional trading is necessary to succeed in forex, and learning from a professional trader and mentor is the ideal forex education scenario.

 
• Learn Forex Trading Without Committing These Two Errors:

Over-trading and over-leveraging one’s trading account are probably the two biggest and most committed trading mistakes. They are also the reasons why most traders end up blowing out their accounts and quitting all together. As you learn forex trading, you have to be very conscious and cautious of these two trading errors, they often sneak up on you without you really being aware you are making them. The most vulnerable time for traders to commit one or both of these mistakes is right after a trade closes out, whether it’s a winner or a loser.

As you learn forex trading, you must realize that each entry into the market is unique, and it cannot be influenced at all by your previous trade. It is often hard to tell if you are letting your previous trade(s) influence your current one, so the best remedy is to simply walk away from your trading station as soon as a trade closes out, walk away for at least 24 hours. Many amateur traders will jump right back in the market as soon as a trade closes out, either to try and “make back” money they just lost, or because they are on a euphoric high from hitting a winner or a series of winners. You should never force a trade where there isn’t one; you cannot control the market, but the market CAN control you if you let it, all you can do is control yourself.

• Learn to Be Emotion-free as You Learn Forex Trading

As you learn to trade forex it is very important to understand the impact of your own thoughts and emotions on your trading account. The more you treat the forex market like a casino; becoming addicted to being in a trade and getting a “high” from the feeling of greed and hope, the more money you will lose. This seems like pretty obvious common-sense advice, yet most traders end up trading emotionally, whether they realize it or not.

 
The best way to learn forex trading without becoming emotional is to become calm and calculating in every interaction you have with the market. If you pre-plan for all scenarios you might experience while trading the market, there will be no surprises, if there are no surprises then you will have nothing to become emotional about. Most traders simply do not have a trading plan and they don’t have trading journal, they trade in a very haphazard and unorganized way, thus opening their minds up to become emotional. As you learn forex trading, it is imperative that you understand the importance of creating a forex trading plan and a forex trading journal, keep both of these and you will be far ahead of the majority of other traders.

• Learn Forex Trading from a Professional

Many aspiring traders want to become professionals and learn forex trading good enough to make a full-time living at it. The problem these aspiring forex traders face is that they often do not learn forex trading from a trusted and experienced source. This source should be someone who is already a full-time professional trader, instead of someone who is simply out to sell you their forex trading “robot” or mechanical trading system.

The importance of learning to trade from someone who is actually already successful at trading cannot be over-emphasized. Just like you need to learn from a mentor or a professional in any other field when acquiring a new skill, you need to learn from a mentor and professional trader when you learn forex trading. Many beginning traders think they can teach themselves to trade successfully, while it is true that with enough time and effort you can teach yourself to trade, it is much cheaper, quicker and more effective to learn from a trusted professional trader.

• Learn Simple Forex Trading Strategies

When trading the forex market it is important that you do not over-complicate your trading strategy. As you learn forex trading, you need to make sure that you don’t fall prey to one of the many internet scammers out there who are trying to sell some trading software system or lagging indicator system. These trading strategies do nothing but over-complicate your charts and your mind to the point where you become confused and frustrated and start second-guessing yourself.

When you learn simple forex trading strategies you can see the market more clearly, and you can read the price movement easier and more effectively. It is very ironic that so many traders decide to over-lay indicators all over their charts, all this does is cover up the raw price action of the chart, and it is this price action that you are trying to interpret. It is analogous to trying to read a book with glasses on that are the wrong prescription and make everything all blurry. Yet, floods of newbie forex traders try to interpret numerous lagging indicators and trading robot signals, when they could just simply learn to analyze the price action setups that occur on a plain vanilla price chart.

So, as you learn forex trading, the best way to learn is from an experienced professional trader who trades using nothing more than price action analysis. By learning the method of price action trading from a trusted professional, you will obtain a perspective on how markets move and how they work that you did not possess before. This perspective is born from understanding how price action is somewhat like the “language” of the markets, once you learn to “speak” this language it will be like a whole world opening up before you that you did not previously know about. Check out this forex trading course to learn more about price action trading.