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If there has to be a trading method that is
talked about the least amount of time in the
forex community, it would have to be
price action.
It's pretty evident why that would be the
case. After all, price action makes
the trader responsible for his trades, not
the indicators.
 When many people start
learning about trading, they just want
something that they can follow along with.
They love the idea of indicators, because
it 100% mechanical. There are no
judgement calls to make.
This literally means that it doesn't matter who
the trader is. As long as they follow the
mechanical rules of these indicators, they will
be successful. You can't help but wonder
if that's the case, then why is it that so many
people are losing money trading
forex.
One would think, if these indicators are useful
and do all the work for you, then why is it
that 95% of forex traders are losing money as
you read this. It should be simple as
long as you just follow what the indicator is
doing, right?
WRONG!!!
I don't care what indicator you are
using. It doesn't have the first clue
what is going on in the market. It's a
static formula that some mathematician came up
with. Sometimes it works and sometimes it
doesn't. It's completely random.
Worst of all, it doesn't tell
you anything about the
market.
How could it? Its main goal is to
translate the price action of the market into a
simple mechanical system. Instead of you
understanding price action, you are letting a
formula do it for you. That's not what
trading is about.
As a matter of fact, I can make a prediction:
If you can't explain to somebody the
underlying reason as to why you are taking
a particular trade, you WILL lose money in
forex. If the only reason you are
taking a trade is because a couple of
moving averages crossed each other, your
future does not look
good.
Instead of going to the no brainer
mechanical system, where you just follow a
bunch of lagging indicators, why not take the
time to learn the sweet science of price
action. Don't be so intimidated by it. It
won't bite you.
You'll be amazed at what you see. Price action
is like seeing the market in its purest raw
form. You'll see where and why a
particular currency will just stop dead in its
tracks and completely change
trends.
Its all there in black and
white.
There is an old saying.
"If you can't see where the marker is
head by looking at a simple chart, you
shouldn't be
trading."
Check out Trading In The
Buff to Learn How To Trade
Forex Successfully Just Using Price
Action.
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