Daily Price Action Strategy
After putting together the free beginner course, I want to share some background on my core trading philosophy: why I trade the way I do, what I study, and how I can help you become a better trader. I hope you enjoyed the free course as much as I did, and you should now have a solid grounding in the basics of the forex market and how it is traded.
A moment before we begin
Knowing the basics of forex is great, and every trader should learn them. But if you are serious about making money consistently in the markets, you need to learn real trading strategies that give you a durable trading edge. Here is some more background on me and on the price action strategy.
I have traded the markets for more than 10 years and learned every lesson you can imagine along the way. Probably the biggest lesson I learned is that simpler is better, and that is the main point I try to pass on to you. It is why I do not use a lot of indicators or messy trading systems. After I became a consistent trader, my main mission was to help other traders see a point of light through simple trading with a price action strategy.
I am very passionate about forex trading, and I know many other people are too. Unfortunately there is a lot of misleading information out there, and it can be genuinely hard to start off on the right path. My goal as a trading mentor is to lay out a simple path for all traders, and that path is tied to the price action strategy I have found to be very effective over the years. Be sure to check part 6 of this course on price action analysis to refresh what you know about trading price action.
The price action strategy and trading with it
My core trading philosophy
My personal trading style is focused entirely on reading the market’s price action in its raw form, in other words trading analysis based on price action. I do not use any confusing indicators or systems. I simply trade from a price chart that is free of any indicators.
I have an arsenal of strong price action patterns that I look for in the market structure. For example, if the market is in an uptrend I look for price to pull back to a support level inside that uptrend, which is what I consider a value area, and I patiently watch for one of the price moves that signals confirmation to enter the trade. While the majority of my trades follow the market’s prevailing trend, I will sometimes take a counter-trend trade or a trade within a defined range.
Whatever direction I trade in, the main thing I look for is clear price patterns that form at key levels in the forex market. When I see that a trading pattern has appeared at a key level in the market, I treat that as the green light and a confirmation signal for me to enter the trade. Given that there are only a few good signals each week, I spend a lot of time waiting patiently for a trading opportunity.
In short
My trading style relies heavily on finding multiple pieces of evidence that work together to confirm an entry into the market, something professional traders call trading with confluence. When it comes to the price action strategy, trading with confluence means looking for multiple factors on the chart that support entering on the price action signal that has formed.
In general the price action strategy can look very simple, honestly, but as I said before, simpler is better in forex trading. I will be honest with you: beginner traders are drawn to very complex trading methods, and that usually leads to their eventual failure. As a trader with long experience in forex, I know what has worked in the markets, and I feel my job is to pass this on to other traders. So my main priority as a trading teacher is to teach people how to trade with a simple strategy in forex.
My favorite markets and time frames
If there is one lesson you should accept right now, this one will save you a lot of time and money: trading the daily charts is the easiest thing you can do to reach your goals as a trader. To be more specific, if you start your trading career by trading small time frames such as the 5-minute and 15-minute charts, you will face a lot of frustration, wasted time, and wasted money.
As you can see, these small time frames contain more variables to analyze (and over-analyze), which means more noise, or random price action that is not meaningful. When you move up the time frame you get a natural filter that reduces the noise and confusion of the small time frames. The daily chart gives you the best view of the market and also provides the most effective filter against the noise of small time frames. I also trade the 4-hour time frame quite often, and sometimes the 1-hour charts, but I never look at a time frame below 1 hour.
My favorite markets to trade are EUR/USD and AUD/USD, but every day I usually watch all the major currency pairs looking for price action trading opportunities. I also trade gold and silver, and I sometimes look at crude oil, the Dow Jones cash market, and some local Australian stock indices.
Why I trade the way I do
As I say over and over, I am very simple in how I think about the markets and trade them. My years spent in the trenches of the markets reinforced the need to strip unnecessary variables out of my trading. Most traders over-analyze the market and confuse themselves as a result, ending up trading emotionally and losing money. So I have no desire to sit in front of my computer screen staring at the 5-minute chart like a zombie day trader. I prefer to trade the daily charts in a relaxed, stress-free way. If there is a trade setup that meets my predefined criteria, I take the trade, and if not, I usually walk away until the next day.
I really want to stress that a slow, measured approach to your trading is far better than trying to day trade or take 20 trades a week. If there is one thing you take from this free course, it should be this: you will not make quick profits by trading intraday time frames and rushing your trades. You are more likely to make money by being a patient trader who takes a daily look at the chart. Success in forex trading is measured in months and years, not days or weeks.
What you will learn from me as your trading mentor
I would say I am a bit of a contrarian in my trading, and perhaps in my daily life too. I have often found that if you do what everyone else does, you get what everyone else gets, and when it comes to trading that approach simply does not work. The truth is that most traders struggle to make money in the markets, become frustrated and emotional, lose money and waste time, and generally do not have a defined trading strategy or forex trading plan. So if you want to be like most other traders who chase indicators and magic robotic trading software, you will probably lose money quickly like most of them.
I do not sugar-coat anything, and I have built my reputation on that fact. So what I will tell you is that if you choose to learn from me, you will learn honest, long-term, sustainable trading methods. I will teach you how to read the natural dynamics of price on the price chart and how to find high-probability entry points within it. You will develop a discretionary trading sense that lets you trade for yourself for good. This is a skill you can carry with you not only in forex but into any market.
Forget signal services
You will never need a signal service or a $5,000 trading course to teach you to trade, because I will teach you the one trading strategy you will need. I firmly believe in the old saying, “Teach a man to fish and you feed him for a lifetime.” I do not care what anyone else tells you: mechanical systems will always fail in the long run. You need to learn to read and understand the market’s price action, and you need to learn to bend and flow with it. At its core the market is dynamic and constantly changing, so you need a trading strategy that gives you the ability to trade in that kind of environment. The market will change over time, and as a price action trader you have the ability to change and adapt with it.
Closing thoughts
I want to give my personal thanks to every one of you who followed this course, with special thanks to our brother Mahmoud, the owner of this educational platform, and I wish him all the best. I hope you now have a strong understanding of the forex market and currency trading. Whatever path you decide to take in your forex trading career, I wish you every success. And if you remember nothing else from our site, remember that “simpler is better” when it comes to trading.
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Frequently asked questions
What is the SK strategy?
The SK strategy is one of the trading strategies used in the financial markets. It relies on analyzing charts using Elliott waves. This strategy involves using technical indicators and price variables to identify entry and exit points for trades.
What are forex strategies?
Forex strategies include many different methods for trading foreign currencies. These strategies cover fundamental and technical analysis, automated trading using robots, and social trading that lets traders share tips and recommendations with each other.
What are the best trading strategies?
There is no single strategy that suits everyone; it depends on the trader’s goals and level of experience. That said, some common strategies include trend analysis and trading in the direction of the trend, breakout trading and pullback trading, and day trading and scalping.
What is price action?
Price action in the financial markets refers to price changes over a specific period of time. It covers upward, downward, and sideways price movements, and chart analysis is used to identify price action and the market’s direction.
Risk disclaimer
This article is for educational purposes only and is not investment advice or a recommendation to trade. Forex and CFDs are leveraged products that carry a high risk of losing money rapidly, and most retail traders lose money. Past performance and any strategy described here do not guarantee future results; trading signals can and do fail. Never trade with money you cannot afford to lose, and consider seeking advice from a licensed financial adviser. Some links on this site may be affiliate links, meaning we could earn a commission at no extra cost to you.
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