Description: In this brief forex training piece we will be taking a look at what you need to know about price action trading.
Price action trading is one of the most overlooked methods of trading. To demonstrate this fact, go to any forex forum of your choice and you will see the kind of attention that threads discussing typical indicator laden systems attract. Threads that are dedicated to price action trading,on the other hand, pale in comparison. This is one of the reasons why 95% of traders lose their trading accounts after starting out. The statistics are very discouraging but if people stopped making the same kind of mistakes, the numbers would look a lot better
If you do a little research online, you will find out that the most successful traders are those who trade without any of the over bloated indicators and coloured charts that everyone else is using. The majority of them trade with price action techniques.
Definitely different kinds of traders trade price action in their own way, but the bottom line is that none of them uses indicators like MACD, Stochastic etc. in their trading. Traders who use such indicators are often not able to see what the market is actually doing as they are more fixated on what the indicators they are using are showing at any point in time.
Before many of the systems used by these traders indicate a buy or sell, the market would have already moved a considerable distance and entering into the trade at the time of signal would be entering into an already exhausted trend.
With price action trading, you get a strategy that is devoid of any gimmicks and picks out good trade entries quickly and with precision. When it comes to fighting overtrading, price action trading also comes in handy, as good setups appear only once in a while.
Where can you get high quality price action forex training?
Just as you can learn any other strategy online, you can also learn price action trading by searching for useful links on any search engine. You will be shown webpages and blog posts dedicated to this method of trading. You can go there and read the articles while asking questions on any areas you do not understand.
Similarly, you can take your search to file sharing sites like 4shared.com. On these sites, you will find tens of eBooks dedicated to price action trading. Download a few of them and kick start your journey to trading success. If you are so inclined, you can pay some fees to be trained by a price action trading expert. There are a few of them online. However, you must note that 80% of what you are paying for can be found online. So do not be disappointed if you do not see much difference in the course outline after you must have paid some money for the forex training.
Again, it is important to note that price action trading is not some sort of Holy Grail of trading. Therefore you will still have losing trades. However, you chance of succeeding in the market with this type of strategy is higher than if you were to trade off indicator-laden charts.