There are so many ways that you can trade forex. But so many people want to know what's the best way to trade forex? I always tell them just two words: Price Action. It really is a major part of being able to understand the market, and understanding the reasons it moves the way that it does.
So many traders do not think about price action at all. Instead they are purely on indicators. My question to them is "what purpose do you think your indicators are serving you"? I think they treat it as a translator of the market. As a price of currency pair goes up and down, their indicators interpret what is happening and tells the trader if and when to buy or sell.
In other words, instead of YOU looking at the market, and deciding for YOURSELF whether you should be buying or selling, you are putting all of your trading faith onto a set of indicators. Sorry … but I just do not think that's what trading is all about.
I like to use the analogy of trying to learn another language. You probably feel like it's a lot of work (it's not actually). Let's say you wanted to take a vacation in Spain. You can try to learn to speak some Spanish, or just go to Spain and hope to run into people who speak English. Which choice do you think will lead you to have a better time in Spain? I think the answer to that should be pretty obvious.
Well … it's pretty much the exact same thing when you are talking about trading the forex market. You can use trading indicators like translators of the market, day in and day out, or you can learn the language of the markets for yourself. There is no reason why you could not be a fluent trader.