0115 946 9399

Which Markets Should I Trade Using Price Action Trading ?

Trading the financial markets is now even easier, cheaper and faster than ever before.
There are continually money making opportunities on a Daily basis and this will always be the same.


From a trading point of view a trader likes to trade a volatile instrument whereas an investor speculating in shares prefers little volatility.High Volatility indicates good upward movements and good downward movements. This is vital from a traders perspective to making money.

From a traders point of view FOREX has become the big name in recent years. This is partly down to the volatility that many of the currency pairs make and also the liquidity of the market. Trading the indicies such as the FTSE 100 or the Dow Jones 30 etc can also offer good trading opportunities. The commodities such as Gold and Crude oil are others that offer Daily opportunities because of high volatility.
As we have said traders like volatility but to make money out of volatile markets one needs a good trading methodology.

Let’s face it anyone could pick a share and if a little luck was with them over a period of time that share might slowly rise in value. I think it is fair to say that there is no skill in this. The choice of share chosen might have been made reading a newspaper tipping column or by following friends suggestions. No matter the means when choosing shares on the principal of “Buy” and “Hold” the skills needed to do this are much less than those of being an active trader.
What we concentrate on at is our  “Price Action Trading Method”.

The reason we like price action so much is that no matter what time frame or what instrument you are trading there is a method for taking signals. This is a must. The “Price Action Trading Method” is totally universal. I think most would agree that if one method worked for one instrument and a different one worked for a different instrument it could be highly likely that there could be something fundamentally wrong with that methodology. That is something we as traders must be careful about when choosing what method we should be using to make trading decisions. Trading is a learning process and is something that cannot be learned properly overnight.
Private traders in today’s market place have a great choice of not only what instrument to trade but also the choice of whether to use the “Cash”(spot), “futures” or even the options markets to trade that instrument.
It doesn’t matter if you trade the cash, futures or options markets you still need a methodology on which to base your signals.
The options markets are more sophisticated than the cash or futures markets but at the same time the strategies that can be used when using options can offer many opportunities for not only directional trading but also hedging an existing position. Many large financial institutions use OPTIONS as a hedging tool.
We trade options ourselves and offer options training workshops on a regular basis. Some people find options really intriguing and love trading them. Off course, as I have already said when trading a Financial instrument you need a good powerful methodology to trade for the purposes of decision making.
Some of the FOREX pairs to look at with the most volatility in recent times are the GBP/JPY, EUR/NZD, and GBP/AUD
Some of the least volatile FOREX pairs in recent times are the EUR/GBP, EUR/NSD and the EUR/CHF.
The indicies to look at are the FTSE 100, the Dow 30, the Nasdaq 100 and the S&P 500.
The commodities that we mainly trade and that possess good volatility are the Crude oil and Gold markets. Crude oil is especially volatile and it is only the more experienced trader that should attempt to trade this market, certainly on an intraday basis.
Remember as a trader you can make money in both RISING and FALLING markets!!

Leave a Reply