Finance Tips and Notes

Trading Price Action has go to be the most overlooked trading method in the forex market. There is a very simple reason I say this. Just look at how many people fail at trading forex. If you haven’t heard the statistic, here it is: 95% of people who trade forex, lose money.

I know that statistic is rather depressing, but if everybody just stopped making the same mistakes that most losing traders make, there is a very good chance that you could be part of the 5%.

So how is it done? This is so easy, that I can’t believe more people don’t think of this. Why don’t you just do what the rich and successful do?

All you need to do is some simple research and realize that many of the most of powerful traders in the world rely on price action as their only form of technical trading.

Obviously different traders use price action in different ways. But the main point is almost none of them use indicators like Stochastics as part of their trading methods.

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.

The sad thing is that most of these struggling traders have never even entertained the idea of using price action. Unfortunately, they would much prefer to use formulas that don;t help you in any way to decide whether to buy or sell a currency.

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.

Tags: economics