Having confidence in the system you are trade is essential for Forex trading success. Confidence is what allows you to place the trade with the expectation of a positive result, even after suffering loses. Using price action setups is a great way to build the confidence you need to finally succeed as a Forex trader.

One of the most common mistakes inexperienced traders make in the beginning is overcomplicating their trading system. They think the more indicators they add to their charts, the less likely they are to place a losing trade. Unfortunately, they get so much conflicting data that what really happens is they never feel 100% confident about the trades they place. This destroys any confidence they have in the system. And when the inevitable losing streak comes, they lose faith in the system all together and abandon it.

Price action trade setups are easy to identify, which makes them good for new traders. If you have a price action trading plan, and keep it simple, it is easy to know exactly what to do when the price action setup presents itself. When the setup shows up on your chart, you are confident it gives you an edge in your trading, and have no problem placing the trade with a positive expectation. That is the power of using straightforward trade setups just from how price moves on the chart.

The hardest thing new traders need to realize is no trading system is perfect. Trying to make it perfect by overcomplicating your trading is only going to lead to a loss of confidence in your system every time there is an inevitable loss. The most important step you can make as a trader is accepting your will suffer losses from time to time, regardless of the trading system or service you are using. However, when you have confidence in proven price action setups, you can get into the market knowing your are going to have more winning trades than losers. And that is all you need to make a great living as a trader.