Trading Forex Using Price Action - Unleash The Power

By: Jim Buhs.

Nowadays everybody is looking for the short cut when it comes to trading. They don't focus on the oldest form of technical analysis: Price Action. It's a shame more traaders aren't interested.

You can tell this is true by just going to any forex forum. What do you normally see people talking about? Usually its about some magical system filled with a bunch of indicators or a Forex Expert Advisor that basically uses those same lagging indicators to come up with an automated forex trading system.

Do you see what's wrong with this picture?

Well for starters, they need to realize that all the indicators like stochastics, MACD, RSI, etc.... are lagging. They are great for telling you what has already happened. It provides no ability to forecast future prices.

Traders also need to be able to understand that 9 out of every 10 forex traders are losing money as you read this. If this is the case, why use the same exact tools that all the other struggling traders are using?

You also need to think about the fact that most traders on a forum are usually struggling traders. If they weren't struggling why would they be on a forum to learn about trading. The real successful traders don't really have the time. They are too busy trading the markets.

What's bigger than ever now are these forex expert advisors. If you don't know what a forex expert advisor is, they are basically automated trading robots. Developers are able to program a trading system using lagging indicators so that these robots trade for you while you're not there.

I could see why this would attract most newbies traders. I mean, who wouldn't want to have all that free time to yourself. You can go to the beach, the ballgame, dinner and a movie and all the meanwhile you're becoming rich, right? Well, not exactly. That's not the way it works.

People are asking way too much from these expert advisors. Think about what people asking from them. They are asking them to acccomplish something that most forex traders in the world can't do: Make money trading forex.

For those that want to have a deeper understanding of the market then, I recommend you get rid of all your indicators and start trading the markets on a clean chart. Just follow the price action. See if you can start to notice patterns that are always happening. These are the kind of patterns you need to focus on, because this is how you forecast future prices.

Article Source: http://www.bigfreearticles.com

Nowadays everybody is looking for the short cut when it comes to trading. They don't focus on the oldest form of technical analysis: Price Action. It's a shame more traaders aren't interested.

About the Author:
Jim Buhs has become successful at trading forex after he learned how to trade price action. If you like to see what he used to learn to trade with no indicators, make sure to check out his blog.

Tags: finance, currency trading, forex, forex trading, currency trading, investing, trading, finance, business, finance, business;finance

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