I cannot think of a currency trading strategy that
has been so underutilized by the trading public more than price action. It seems strange to
say that because it is the oldest form of trading. It's actually the first ever technical trading
strategy long before trading indicators were a reality.
If you are trading historian, I am positive you must have
heard of Jesse Livermore. He was a floor trader during the infancy of the stock
market. He used to trade based on the volatility of the price movement just by paying
attention to how a particular stock would be moving.
Believe it or not, not a whole lot has changed since
then, except obviously technology. The underlying concepts of price action are still the
In fact, I think technology has hurt a lot of
traders. more than it has helped. I say this because traders have become a lot more lazier than
they used to be thanks to all these bells and whistles. That's why we have such things as
thousand dollar trading platforms, and hundreds of thousands of indicators. It's funny, you would
think with all the trading assistance these gadgets provide, you would think that traders would be
having more success than they are (95% of forex traders are losing money). It's one of the true
forex trading dangers.
This is why it's so important to learn how trade forex correctly.
If all these technical thingamajigs actually worked,
I would be the first one to sing their praises. But as I have come to learn more about
trading, I have realized that there are no shortcuts. You have to be prepared
to get your hands dirty, and educate yourself.
Believe me, when you do, there is no limit to
the kind of success you can achieve. The truth is that for every trader who is crashing their
account right now, there is a trader who is telling their boss "I quit" so they can trade
full time. These are the kind of people who are living their dream lifestyle.
So the first thing you have to do is kick those
indicators to the curb. With indicators, you are not really learning the ins and outs of the
market. In reality, the indicator is doing all the trading. All you are doing is
hoping that the indicator is right more times than it is wrong.
It's YOUR job to become the