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.
When it comes to the rich traders and how they became successful, you have to know that they are to truly and understand what the market is saying to them, much like a person would read a book. These traders actually understand the fundamental reasons as to why price will start and stop at certain price levels. It’s not just a bunch of lines on a chart. It’s more complex than that. You can use this kind of information you get rid of that job you can’t stand earn a living, trading the market.
Its not really difficult. Anybody can understand price action. Its just that most people don’t want to take the time to really understand how to read the energies of the market. Everybody always wants that holy grail or magical indicator that people can just plug into their trading platform and it’ll do all the work for you. Well, it doesn’t work like that. It would be a great if it did, but it doesn’t. I had to learn that the hard way. But, as is life, you live and you learn.
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”.