• My core trading philosophy
My personal trading style is completely focused on “reading” the
price movement of the market in its “natural” form, or in other words:
“Price Action Trading Analysis’”. I don’t use any indicators or
confusing systems; I simply trade from a naked price chart.
I have an arsenal of powerful price action patterns that I look for
within the structure of the market. For example, if a market is in an
uptrend, I will be looking for price to retrace to a support level
within the uptrend, this is what I consider a “value” area, and I will
then watch patiently for one of my price action signals
to confirm a trade entry. Whilst the majority of my trades are
following the trend of the market, I will occasionally take a
counter-trend trade setup or a range-bound market trade.
Regardless of what direction I am trading, the main thing I am
looking for is “obvious” price patterns forming at “key” levels in the
market. When I see one of my trade setups has formed at a key level in
the market, I consider this a green-light confirmation signal for me to
enter a trade. Given that there are only a ‘few’ good signals each week,
I spend a lot of time just waiting patiently for a trading opportunity.
I wrote a very popular article last year on the concept of being a
patient trader waiting to ambush trading opportunities, you can read
that article here: “Trading Like A Sniper “.
In summary, my trading approach is largely built on finding multiple
pieces of “evidence” that work together to confirm an entry into the
market. Professional traders call this “trading with confluence”.
In regards to my price action trading strategies, trading with
confluence means looking for multiple factors on the chart that support
the case for entering on a price action signal that has formed.
Overall, my trading strategy might appear quite simple, and frankly
it is, but as I said before; simple is better in Forex trading. I’ll be
honest with you guys, must unprofitable or beginner traders are
attracted to overly-complex trading methods and this is usually what
leads to their eventual failure. As a trader who has “been around the
block” a few times, I know what has worked for me in the markets, and I
feel it’s my job to convey that information to other traders. Thus, my
main priority as a trading mentor is to teach my students how to trade
with a simple forex trading strategy.