The following article will give you some quick pointers about some important topics that you need to understand if you want to become a successful forex price action trader, if you wish to know more about each topic simply follow the link at the end of the paragraph. Enjoy!
• What are the best currency pairs to trade and when should you trade them?
Traders often get confused about which currency pairs they should trade and which ones they should avoid. While there is technically no right or wrong answer, there are certain advantages to avoiding the exotic pairs and instead sticking to the majors and a few of the crosses. The majors are more liquid, this means you can get in and out easier and at the price you want, it also means the spread between bid and ask price is smaller. The spread is the fee you pay to your broker for making the market for you, it essentially means you are negative on the trade as soon as you enter it, so the bigger the spread the bigger pip amount you have to overcome before you are positive on a trade. If you want to learn more about the best currency pairs to trade click the link.
• Risk / reward in forex trading
Understanding the power of risk / reward scenarios and knowing how to implement them is one of the most important factors in becoming a successful forex price action trader. You need to first calculate the honest and realistic potential risk on any forex trade setup you are considering taking, then you calculate your reward as a multiple of this risk. If you consistently execute your trades with a risk / reward of 1:2 or better, you can lose on over 50% of your trades and still make money. Check out the following link to earn more about the awesome power of risk reward in forex trading.
• The best way to get started with forex price action trading
Chances are you are new to the world of forex currency trading and price action trading, that is probably why you are on this website. One important fact that you need to understand quickly when it comes to forex trading, is that less is usually more. Typically, traders who take fewer positions and hold them for a period of days or weeks, make more money on average than short-term traders or day traders. It is also very important to learn to treat your forex trading like a business and have a forex trading plan. To find out more about getting started with price action trading just follow the link.
• Why you should avoid trading with indicators
Aspiring forex traders very often get caught up on trying to trade with numerous lagging indicators all over their charts. The problem with this is that they do not even know how to analyze the price action below all these mysterious indicators. If you will just learn to trade off forex price action trading strategies before you attempt to learn any other trading strategy or system, you will subsequently realize how silly it is to trade off anything but raw price action. Learn more about why indicators destroy trading success by following the link.
