One strategy that possess the characteristics of a profitable forex trading strategy is price action trading. While it is true that any particular trader has the ability to trade even a profitable method like price action unprofitably, when you trade with knowledge of how to accurately and consistently read a plain vanilla price chart, you greatly increase your probability of profiting consistently. Professional forex traders understand the value in learning how to read price dynamics on a plain price chart. Once you gain a thorough understanding of the concepts behind price action trading, it will make any other forex trading strategy you might decide to use much more profitable. However, it is entirely possible to trade the forex market off price action all by itself.
The video below depicts one way to make money with price action trading in the forex market. You will be hard pressed to come across any other
Notice how the chart is not clouded up by conflicting lagging indicators or other such confusing trading “tools”. This is one big reason why price action trading is a profitable forex trading strategy; because it is simple and effective it helps to keep traders calm and clear-minded while trading, thus eliminating many of the usual emotional trading mistakes that are induced by overly-complicated methods.
Price action trading is certainly not the only profitable forex trading strategy in existence. However, it is one of the few that is used by almost every professional trader in some degree or another. There is simply no way to implement any degree of discretion into your trading if you do not possess a thorough understanding of price dynamics in the context of daily forex market movement. This discretion is one of the big reasons why price action trading is much more profitable over-time than other strategies that involve rigid rule-based methods. The forex market is simply too much of a constantly changing entity to be effectively tamed by a strict set of rules. Traders and investors of the likes of Warren Buffet and George Soros did not make their billions by following rigid rule-based trading strategies. Rather, they used a refined sense of gut-feel, research, and discretion to correctly pick impending market direction.
Another big boon to traders and investors that use the profitable forex trading strategy of price action analysis is that they will experience much less stress than traders using most other methods. The reason for this is because price action trading is accurate across all time frames, this allows traders to trade “end of day” signals if they so desire, meaning they only need to look at the charts one time a day or less if they desire. When you can reduce your involvement with the market, you typically also reduce the chances of messing up your trade by changing stop loss positions or profit targets. This is yet one more reason why price action trading is a profitable forex trading strategy.
Profitable Price Action Forex Strategies
