Learn How To Trade One Price Action Setup
“General knowledge, no matter how great in quantity or variety it may be, is of but little use in the accumulation of money” Napoleon Hill.
Would you like to be an expert Forex price action trader? It takes a real focus to achieve this goal. It’s not possible to do this while switching strategies all the time as the often referenced 95% of losing traders do.
It only takes one type of setup to make money trading the Forex market. Learn how to trade one Forex setup properly and this is all you need rather than half learning numerous technical setups. Mastering one trading setup will also help you to grow to be much more disciplined and focused in your approach, attributes that you unquestionably should work on if you wish to succeed in your Forex trading endeavours.
The process involved in genuinely mastering one Forex trading setup could take you a long time, but your prospects of building an account are improved considerably by accomplishing this. If you can master a setup through back testing, forward testing and eventually going live you should understand pretty much instantaneously whether or not the trade is there for you to take.
What Is A Forex Trading Setup?
A setup is the specific elements and criteria that you expect to be met in order to allow a trade to be placed. I will give an example; a trader may choose to wait for a currency correlation breakout setup which is explained in the linked article, alternatively it could be as simple as buying a pullback to a moving average if a pinbar reversal then presents itself.
Build Discipline And Stay Focused While Trading One Setup
There is more to it than simply mastering the trade setup. The discipline that you will build while refraining from trading any other setup you have previously learned about is something that can put you on solid ground. The alternative could be that you will take every signal that comes along and close winning trades early when you see a signal to trade in the opposite direction, and then another signal to trade once again in the original direction, and so on and so forth…not good.
Napolean Hill – Specialised Knowledge
Let’s go back to the original quote from Napolean Hill. “General knowledge, no matter how great in quantity or variety it may be, is of but little use in the accumulation of money”. General knowledge in this respect could refer to your high level understanding of many trading strategies gained form reading books, watching trading webinars or browsing forums. You may spend just enough time understanding, from a high level, what is involved but have never taken the time to work out the subtle nuances which made the system profitable in the first place.
Even if you have fully understood the material at hand you will be hard pressed to make money trading the setup while you do not have the required focus to execute efficiently. Your mind may be wandering from one setup to another and this is not really conducive to extracting money from other highly focused individuals and institutions who are likewise out to make make money trading the Forex market.
Get Back To Basics With Your Trading
Maybe it’s time to get back to basics and focus on one simple price action setup. It might be a pin bar or inside bar breakout. You may have spent a few days looking into these before but did you really test the setup in the optimal chart placement. Big rounds numbers combined with highly defined support and resistance and confluence areas spring to mind. You can sign up for a new demo account today and start learning how to trade one simple setup with no risk involved. If you are losing money trading maybe you should read the Napolean Hill quote one more time.