Learning To Trade Forex By Understanding Price Action

Learning To Trade Forex By Understanding Price Action

by John Oswalt

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.

Using these kind of trading techniques can’t really be expected to work. Making money in the market is a little more complex than that. Think about it. Your buying and selling is based solely on indicators which are only programmed to let you know what has already happened in the market.

NEWSFLASH: The market could care less what the stochastics are telling you. It serves absolutely no purpose, and I can prove it. It’s real simple. How many successful traders in the world do you know that just look at a stochastics indicator to let them know what the market is doing? I frankly haven’t heard of too many. But if you really study the most famous traders in the world, you’ll know that the majority care about three things: PRICE ACTION PRICE ACTION PRICE ACTION!!!!

There is one thing that you have to know about price action. These successful traders might not have used in the same exact manner, but you can be rest assured that the concepts of price movement were incredibly important to the reason why they would buy or sell. It really just boils down to what has thee price been doing, and how can I profit from it. The harsh truth is there is not really that much separating the rich traders and all the traders who are crashing their accounts. It’s not like most of the rich traders went to an Ivy league college. In fact, you will be quite stunned to know that some of them barely got out of 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.

Believe it or not, it’s not as hard as you may think it is. Just about anybody can grasp the concepts of price action. Frankly, though most people don’t want to take the time to do so. They would much prefer searching for shortcuts like the infamous holy grail or some plug-in indicator that will tell you when to buy and sell, so you don’t even have to think about it. Trading shouldn’t be handled like this. The moment you get out of this kind of mentality, the better off you are going to be. I speak of this, from experience.

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”.

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To learn forex, you should really check out Trading In The Buff.

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