There is certainly a lot of debate in the forex
trading community about what exactly is the best forex trading strategy? There are so many various
opinions on this subject that it could make your head spin. You'll hear opinions like trading with
indicators like stochastics, MACD, RSI, or even full trading systems like Eliott Waves and
How come you never hear about price action?? After all
it's only the oldest forex trading strategy around. All you need to do is look at a
famous stock trader like Jesse Livermore who became a millionaire at the turn of the 20th
century, just trading price action on the stock market floor.
The thing is not a lot has changed since those
days. Sure, technology may be amazing right now, but the underlying concepts of trading still
haven't changed. It all comes down to predicting future price movement.
Unfortunately, price action has become a bit of a
lost art form. I can see why it has become that way, when you consider all the shortcuts that
people are selling nowadays. It seems, sadly, that traders are much more interested in
a mechanical forex trading system that don't really require
any kind of analysis.
However, if there is one thing that I have learned in
my trading experience it would have to be the fact that 100% mechanical trading systems simply
don't work. They may seem very desirable for newbie traders but in the long run you are
only hindering yourself.
You can't expect to just throw a couple of indicators
like stochastics, MACD, or RSI and expect to see any kind of long term success. These are nothing
but forex trading
For example, think about how many moving average
crossover systems that are out there. In fact I'm willing to bet that you have tried
more than a few of them. I'm pretty sure you didn't have much success with
them. That's simply because the trading is much deeper than that. If trading
was that simple, then everybody would be rich.
Don't make the same mistakes that so many other
traders seem to make.