The Benefits of Trading With Price Action
I cant help but notice that every time a newbie forex trader is wants to learn more about how to trade, they rely solely on indicators. They spend all their important time learning about useless tools such as RSI, Moving averages, MACD, and all other generic indicators.
What eventually happens is that is all you see on their trading charts: indicators. It really never dawns on them that they are not trading correctly. Sadly, trading with price action never comes to their mind. Many traders get scared when they hear the concept, and think only smart people can trade it. They would prefer just using their indicators to tell them which way the market is headed. However, they really dont know which way the market is moving.
What most people dont realize is the fact that when you trade with indicators, you are essentially trading other peoples signals. All you are doing is hoping that they are giving you correct information, because YOU truly dont have any idea of why you are taking a trade. You are essentially going on blind faith.
But the real beauty of trading forex with price action is that once and for all, you are able to eliminate these useless tools, and you are able to see the market the way it was initially intended: without the need for indicators.
One of the biggest obstacles for traders who are using indicators is the fact that on many occasions indicators will give you two opposite signals. For example, moving averages can be telling you to buy, while MACD is telling you to sell. So you are really just sitting there and waiting for these indicators to align, in order for you to take a trade.
With so many traders not really grasping what price action is all about, they are held hostage with these indicators, as they have to wait for them to match in the same trading direction.
Im sure you have an idea of what a tough spot this is for a trader to be in. Think about it. Instead of being proactive in the market, you are left staring at a bunch of random lines hoping that they match in the same direction. The really sad thing is that most traders dont even understand what exactly these lines represent.
What I would like you to do is the next time this idea of trading without indicators pops in your head, I want you to think about all the floor traders on the New York Stock Exchange. Think about the fact that most of these traders do this for a living without having to even use charts, much less indicators. - 23210
What eventually happens is that is all you see on their trading charts: indicators. It really never dawns on them that they are not trading correctly. Sadly, trading with price action never comes to their mind. Many traders get scared when they hear the concept, and think only smart people can trade it. They would prefer just using their indicators to tell them which way the market is headed. However, they really dont know which way the market is moving.
What most people dont realize is the fact that when you trade with indicators, you are essentially trading other peoples signals. All you are doing is hoping that they are giving you correct information, because YOU truly dont have any idea of why you are taking a trade. You are essentially going on blind faith.
But the real beauty of trading forex with price action is that once and for all, you are able to eliminate these useless tools, and you are able to see the market the way it was initially intended: without the need for indicators.
One of the biggest obstacles for traders who are using indicators is the fact that on many occasions indicators will give you two opposite signals. For example, moving averages can be telling you to buy, while MACD is telling you to sell. So you are really just sitting there and waiting for these indicators to align, in order for you to take a trade.
With so many traders not really grasping what price action is all about, they are held hostage with these indicators, as they have to wait for them to match in the same trading direction.
Im sure you have an idea of what a tough spot this is for a trader to be in. Think about it. Instead of being proactive in the market, you are left staring at a bunch of random lines hoping that they match in the same direction. The really sad thing is that most traders dont even understand what exactly these lines represent.
What I would like you to do is the next time this idea of trading without indicators pops in your head, I want you to think about all the floor traders on the New York Stock Exchange. Think about the fact that most of these traders do this for a living without having to even use charts, much less indicators. - 23210
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To learn more about trading price action, make sure to check out forex millionaires.
posted by X - Men @ 1:40 AM
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