Learning How To Trade Forex Through Price Action

If there has to be a trading method that is talked about the least amount of time in the forex community, it would have to be price action.  It's pretty evident why that would be the case.  After all, price action makes the trader responsible for his trades, not the indicators.

When many people start learning about trading, they just want something that they can follow along with. They love the idea of indicators, because it 100% mechanical.  There are no judgement calls to make.

This literally means that it doesn't matter who the trader is.  As long as they follow the mechanical rules of these indicators, they will be successful.  You can't help but wonder if that's the case, then why is it that so many people are losing money trading forex.

One would think, if these indicators are useful and do all the work for you, then why is it that 95% of forex traders are losing money as you read this.  It should be simple as long as you just follow what the indicator is doing, right? WRONG!!!

I don't care what indicator you are using.  It doesn't have the first clue what is going on in the market.  It's a static formula that some mathematician came up with. Sometimes it works and sometimes it doesn't.  It's completely random.  Worst of all, it doesn't tell you anything about the market.

How could it?  Its main goal is to translate the price action of the market into a simple mechanical system.  Instead of you understanding price action, you are letting a formula do it for you.  That's not what trading is about That's not  the best forex education you are going to find.

As a matter of fact, I can make a prediction: If you can't explain to somebody the underlying reason as to why you are taking a particular trade in forex trading, you WILL lose money in forex.  If the only reason you are taking a trade is because a couple of moving averages crossed each other, your future does not look good.

Instead of going to the no brainer mechanical system, where you just follow a bunch of lagging indicators, why not take the time to learn the sweet science of price action. Don't be so intimidated by it. It won't bite you. 

You'll be amazed at what you see. Price action is like seeing the market in its purest raw form.  You'll see where and why a particular currency will just stop dead in its tracks and completely change trends.

Its all there in black and white.

There is an old saying.

"If you can't see where the marker is head by looking at a simple chart, you shouldn't be trading."



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