Bitcoin

Forex Made Easy – Price Action is the Only Way to Go

Everybody is trying to find out how to have forex made easy. But they are going about it in the wrong way. Most people usually go on forums to see what other systems people have concocted. They are usually these forex systems that are completely overflowing with indicators.

Many traders feel comfortable about this, because it makes them feel like they are in control. But are they really? Do they have any idea why they are opening and closing trades? Of course not! How could they? All they are waiting for is for a couple of random lines to cross, or some oscillator to go over the some arbitrary level.

I do not mean to knock this because I did this too, when I first started trading. Then it dawned on me that I had no clue what the market was doing. These indicators were basically my translator to the market. Instead of taking the time to learn the language of the market, I was using a translator. That just was not going to get it done.

If there is one thing you can say about the most successful traders in the world is that they have an actual understanding of the market. It's not like when you ask them why they think currency A is going up, they do not say "well, the blue line crossed the yellow line". They can actually explain the reason for it.

The real key to having forex made easy, is through the knowledge of price action. You should be able to look at a simple bar or candlestick chart and know where the price is going. This may sound crazy, but its true. Looking at nothing but price bars is all you will ever need.

You have to remember that all the indicators people use, (the stochastics, MACD, RSI) they have one major flaw: they are telling you what has already happened. They all lagging. Think about that for a second. All these traders are basing their trading decisions off of faulty and lagging information. Are you starting to get why 95% of forex traders fail. Do not be part of that 95%.


Post Comment