From a technical standpoint, I don't believe there is anything more important
that a trader can learn than price action. But it doesn't do you that much good if
you can't handle your emotions when you trade.
Emotions can absolutely destroy a trader. The
two main emotions that are at fault when a trader is struggling is
How is a trader supposed to handle these kind of
The most obvious way is to first know what you
are doing. It's a lot easier to control your fear if you can understand
what the markets are all about.
This is where price action comes in. When you
understand price action
price movement, you can definitely become a more relaxed trader. The reason
is quite simple: You know what's going
However, if you use indicators, this will only
increase your fear, just because you really don't know what the market is doing or where the market
You're sole reason for getting in and out of the
trade is on an indicator like a stochastics, moving averages. As the indicators go, so does
your trading, especially with forex autotrading.
That would make me anxious too. You really have no say, as to what
your results will be as its all dependent on the indicator.
I used to suffer through the same fate, and not only
was I an unsuccessful trader, but I was also a scared
trader. There is no worse feeling for a trader than when they are too scared to
enter or exit a trade.
The fear is justified, because you are basically on
emotion. When there is a severe lack of knowledge, emotion is all that you
have left to work with. And when you're trades are fear based, you could imagine how the results
will turn out.
It's a lot different when you can look at a chart and
simply know what's happening. It's like reading the market as if it was a book. You can decipher
the reasons why the price moves in a specific way.
It's no coincidence that the time I learned about
price action, was when I stopped getting so nervous about my trades. I could just relax and
open a position with full confidence.
I may not be right 100% of the time, but that's also
an important part of the emotional aspect of trading. It doesn't bother me to take the
occasional loss every now and again. Because I used a real
strategy, not a mechanical indicator driven forex trading