I cant help but notice that every time a newbie forex trader is wants to learn more about how to trade, they rely solely on indicators. They spend all their important time learning about useless tools such as RSI, Moving averages, MACD, and all other generic indicators.
What eventually happens is that is all you see on their trading charts: indicators. It really never dawns on them that they are not trading correctly. Sadly, trading with price action never comes to their mind. Many traders get scared when they hear the concept, and think only smart people can trade it. They would prefer just using their indicators to tell them which way the market is headed. However, they really dont know which way the market is moving.
The thing is when you are trading with indicators, its a lot like trading with other peoples signals. You are only hoping that the information they are giving you is right. The reason for this is because you dont actually understand the REAl reason why you are taking the trades that you are taking. All you hope is that the indicators formula is accurate.
But the real beauty of trading forex with price action is that once and for all, you are able to eliminate these useless tools, and you are able to see the market the way it was initially intended: without the need for indicators.
I think one of the things that many traders have to struggle with is the fact that when you use indicators, sometimes you are left with two separate indicators giving you opposing signals. For instance, one indicator will tell you to buy, while the other one will tell you to short.
With so many traders not really grasping what price action is all about, they are held hostage with these indicators, as they have to wait for them to match in the same trading direction.
You can understand that this can certainly be an awkward position for a trader. After all, you are sitting there waiting for some random lines to match to take a trade, which you dont really comprehend, what these lines even mean.
The next time you catch yourself doing this, I want you to think about the New York Stock Exhange Floor, and think about all the floor traders out there who make a lot of money trading by not even using trading charts, much less using indicators.
What eventually happens is that is all you see on their trading charts: indicators. It really never dawns on them that they are not trading correctly. Sadly, trading with price action never comes to their mind. Many traders get scared when they hear the concept, and think only smart people can trade it. They would prefer just using their indicators to tell them which way the market is headed. However, they really dont know which way the market is moving.
The thing is when you are trading with indicators, its a lot like trading with other peoples signals. You are only hoping that the information they are giving you is right. The reason for this is because you dont actually understand the REAl reason why you are taking the trades that you are taking. All you hope is that the indicators formula is accurate.
But the real beauty of trading forex with price action is that once and for all, you are able to eliminate these useless tools, and you are able to see the market the way it was initially intended: without the need for indicators.
I think one of the things that many traders have to struggle with is the fact that when you use indicators, sometimes you are left with two separate indicators giving you opposing signals. For instance, one indicator will tell you to buy, while the other one will tell you to short.
With so many traders not really grasping what price action is all about, they are held hostage with these indicators, as they have to wait for them to match in the same trading direction.
You can understand that this can certainly be an awkward position for a trader. After all, you are sitting there waiting for some random lines to match to take a trade, which you dont really comprehend, what these lines even mean.
The next time you catch yourself doing this, I want you to think about the New York Stock Exhange Floor, and think about all the floor traders out there who make a lot of money trading by not even using trading charts, much less using indicators.
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