Why Price Action Is So Imprortant
If I were to have to pick the number 1 thing that many new traders have to deal with, its the fact that they never really take the time to truly learn and understand the complexities of the market. Most, in fact rely strictly on using lagging indicators. These are the kind of trading systems where the trader is basically hoping that all his indicators line up in the same direction. I'm not trying to make fun of these traders, because this is exactly how I used to trade, and believe me, I did not have much success.
The thing is, if you look at this kind of trading style honestly, can you really expect to make money in the market, when your sole reason to buy or sell is based on indicators which are only designed to tell you what has already happened? Of course not.
I don't mean to be callous but the markets are not concerned about what your indicators are showing you. To the big traders, it means less than nothing. Think about it. Study all the famous and successful traders in history. Do you honestly think that most of them really cared about what the stochastics were doing? NOPE. However, if you do take the time, you will notice that most of these traders really only care about one thing: price action.
When it comes to price action, they might not have used it all in the same way, but I can assure you that price movement was their main criteria. I don't care if its stocks, bond, the S&P, etc....It simply comes down to what is the price doing, and how can I make money from it. Honestly, there isn't really that much separating all the successful traders in the world with those that have failed or are failing. It's not as if these succesful traders are that much brighter than the unsuccessful ones. Most of them didn't graduate from Harvard with honors. In fact, you'd be surprised to know that many of them barely finished high school.
The rich simply enjoy their trading success because they just know how to look at a chart and simply being able to read and understand the market, almost as if it was a book. These are the kind of traders just know why and when the market prices start and stop at certain levels. It's not just a bunch of random colors and lines on a trading platform. There is a lot more to it than that. This is the kind of information that can be used to quit your job and make money full time in the market.
It's actually not as difficult as you may think it be. Just about anybody can understand the concept of price action. It really comes down to the fact that most people don't want to take the time to really grasp what makes the market move. They would much prefer to spend most of the time looking for myths like holy grail or some other magical indicator, that people can just slap on a chart and make millions of dollars. That's not the way it really works. The faster you know that, the better. I had to learn that the hard way.
The real tricky part is to get somebody to really teach you how to look at the market in this manner. It can be difficult if you want to learn it for yourself. Let's face it, if it was that simple, then all of us would be rich. It really comes down to the fact that you need some help with grasping the information and being able to execute it. This is where Trading in The Buff comes in. I know that you have probably purchased other courses and have been burned before. So have I. I know that it can hard telling which ones are for real and which ones are fake. So I thought I would try this course.
But something interesting happened. I realized everything I need is right IN FRONT OF ME. I just have to eliminate all the crap that's blocking my view. I used to trade with sctochs, FIBOs, Moving averages. It turned out to be the last forex training I'd ever need (It feels really good to say that). I thought I would be wandering around aimlessly from one system to another for as long as I live, or until I was dead broke, which ever came first. But, eventually I just found out that less is more. Not until you see the market's movement in all its glory with no interference, then you can't really say "I am a trader". - 23199
The thing is, if you look at this kind of trading style honestly, can you really expect to make money in the market, when your sole reason to buy or sell is based on indicators which are only designed to tell you what has already happened? Of course not.
I don't mean to be callous but the markets are not concerned about what your indicators are showing you. To the big traders, it means less than nothing. Think about it. Study all the famous and successful traders in history. Do you honestly think that most of them really cared about what the stochastics were doing? NOPE. However, if you do take the time, you will notice that most of these traders really only care about one thing: price action.
When it comes to price action, they might not have used it all in the same way, but I can assure you that price movement was their main criteria. I don't care if its stocks, bond, the S&P, etc....It simply comes down to what is the price doing, and how can I make money from it. Honestly, there isn't really that much separating all the successful traders in the world with those that have failed or are failing. It's not as if these succesful traders are that much brighter than the unsuccessful ones. Most of them didn't graduate from Harvard with honors. In fact, you'd be surprised to know that many of them barely finished high school.
The rich simply enjoy their trading success because they just know how to look at a chart and simply being able to read and understand the market, almost as if it was a book. These are the kind of traders just know why and when the market prices start and stop at certain levels. It's not just a bunch of random colors and lines on a trading platform. There is a lot more to it than that. This is the kind of information that can be used to quit your job and make money full time in the market.
It's actually not as difficult as you may think it be. Just about anybody can understand the concept of price action. It really comes down to the fact that most people don't want to take the time to really grasp what makes the market move. They would much prefer to spend most of the time looking for myths like holy grail or some other magical indicator, that people can just slap on a chart and make millions of dollars. That's not the way it really works. The faster you know that, the better. I had to learn that the hard way.
The real tricky part is to get somebody to really teach you how to look at the market in this manner. It can be difficult if you want to learn it for yourself. Let's face it, if it was that simple, then all of us would be rich. It really comes down to the fact that you need some help with grasping the information and being able to execute it. This is where Trading in The Buff comes in. I know that you have probably purchased other courses and have been burned before. So have I. I know that it can hard telling which ones are for real and which ones are fake. So I thought I would try this course.
But something interesting happened. I realized everything I need is right IN FRONT OF ME. I just have to eliminate all the crap that's blocking my view. I used to trade with sctochs, FIBOs, Moving averages. It turned out to be the last forex training I'd ever need (It feels really good to say that). I thought I would be wandering around aimlessly from one system to another for as long as I live, or until I was dead broke, which ever came first. But, eventually I just found out that less is more. Not until you see the market's movement in all its glory with no interference, then you can't really say "I am a trader". - 23199
posted by X - Men @ 4:02 AM
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