Trading Price Action Be Like the Pros
Written on June 4, 2009 by admin
Trading Price Action Be Like the Pros
I can’t think of a trading strategy that is more underused than trading price action I say this with a great deal of confidence Frankly, all you have to do is look at the stats The numbers don’t lie As of right now 95% of all forex traders are not making any money . .This doesn’t mean that the 5% who are making money were born with super extra intelligence or they can tell the future Being one of the 5%, I can safely tell you that is not the case I, just like most traders, had more than my share of losses when I first started trading the forex market . .The real thing that separates the 5% who are having success from the 95% who are failing to make money, all has to come down to learning from your mistakes The 95% just seem to be making the same mistakes over and over again . .One of the many mistakes these traders make over and over again is this ever long search for the holy grail I’m sure you know what I am talking about They feel the need to purchase the thousand dollar trading platform with every imaginable bell and whistle thrown in While visually it may be real impressive, the results leave a lot to be desired . .Your goal as a trader should be not only to make money, but all try to make trading less complicated If you are the kind of person who is flooding their charts 6 or7 indicators, chances are, you are making things more complicated than they have to be . .When you trade with so many indicators, it would be like having 6 or 7 people just whispering in your ear telling you how to trade Who can concentrate like that? . .What’s so stunning is that most people never even think about just getting rid of all those useless indicators that are just taking up space on your charts, and learning how to trade price action It’’s the oldest form of trading, but to many, its like a hidden secret .
Source: www.rsstnx.com
The 3 Biggest Reasons Why Trading Indicators Are Overrated
It’s really a shame that many traders feel that the forex market can only be traded when using indicators In fact, most traders absolutely flood their charts with one needless indicator on top of another Its sad that some people think their chances of success increase with every indicator that they put on their charts . .Well let’s put an end to this right now Here are the 3 biggest reasons why indicators are so overrated: . .They are generally lagging I know that when it comes to back testing, indicators look amazing That’s why newbies get so excited with them It looks like they are the holy grail when you back test them However, there is one little problem with back testing It doesn’t look that accurate in real time, which is what matters in order to succeed . .They don’t tell you anything about the market You can get almost anybody to trade with indicators How hard is it to trade with stochastics? You buy when the market is oversold and you sell when the market is overbought But what exactly does this have to do with the market What are you really learning about the market Do you think that most big time traders really care about whether stochastics are showing oversold or overbought? I don’t think so . .You don”t even have to look at the price This is by far the biggest problem with using indicators It has to do with the fact in how people use them They are mostly used in mechanical trading systems What this means is that all they have to do is blindly follow the indicators The price is completely irrelevant How crazy is that?.
Source: www.rsstnx.com
