Price Action Trading and The Reason Why The Pros Use It
March 8th, 2009. Published under Currency Trading. No Comments.
If you had to single out one style or method of trading that is least used by the majority of the trading public it would have to be price action. I can say this with great confidence because the hard fact is that 95% of traders are losing money right now.
I know reading a fact like that can be a real downer, because you may be a part of that 95% of people. But the truth is if you have an open mind and are willing to learn from your mistakes, there is no reason why you can’t succeed.
So what’s the hidden secret to success in trading. The truth is there none. Just copy what the rich and successful do. It’s really that simple.
If you were to research this subject, one thing would be painfully obvious, and that is that the rich and successful trader rely very heavily on studying price action.
It should be said that not every body trades it the same way. But the important thing to understand is that most don’t rely on Stochastics for help.
Who does use indicators? I don’t want to pick on them, but if you go on almost any forex forum, you’ll be stunned to see how many traders rely on indicator heavy systems. THEY DON’T EVEN LOOK AT THE PRICE! All that matters to them is what the indicators are showing. It should be becoming quite clear as to why 95% of the public fail at trading forex.
It’s so obvious that these people have basically been programmed into thinking that indicators are the only way to trade, so you can tell that using price action is the last thing on their minds.
I don’t know of another trading method which gives you such a pure and honest look at the market quite like price action. It allows you to see the behind the curtain and really get an X-ray of what the market has to offer.