Why Every Trader Should Know Price Action

Posted on July 2, 2009
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by John Oswalt

I would have to say that the most difficult thing for many new and unsuccessful traders to overcome is that they don’t really ever learn to have a strong grasp of the market. In fact, most are probably dealing with lagging indicators. These kind of trading systems usually rely heavily on when these indicators match the same trading direction. I’m not trying to demean this, because I actually used to trade like this. But when you take one loss after another, you tend to look for better ways to trade.

The thing is, if you look at this kind of trading style honestly, can you really expect to make money in the market, when your sole reason to buy or sell is based on indicators which are only designed to tell you what has already happened? Of course not.

NEWSFLASH: The market could care less what the stochastics are telling you. It serves absolutely no purpose, and I can prove it. It’s real simple. How many successful traders in the world do you know that just look at a stochastics indicator to let them know what the market is doing? I frankly haven’t heard of too many. But if you really study the most famous traders in the world, you’ll know that the majority care about three things: PRICE ACTION PRICE ACTION PRICE ACTION!!!!

When it comes to price action, they might not have used it all in the same way, but I can assure you that price movement was their main criteria. I don’t care if its stocks, bond, the S&P, etc….It simply comes down to what is the price doing, and how can I make money from it. Honestly, there isn’t really that much separating all the successful traders in the world with those that have failed or are failing. It’s not as if these succesful traders are that much brighter than the unsuccessful ones. Most of them didn’t graduate from Harvard with honors. In fact, you’d be surprised to know that many of them barely finished high school.

When it comes to the rich traders and how they became successful, you have to know that they are to truly and understand what the market is saying to them, much like a person would read a book. These traders actually understand the fundamental reasons as to why price will start and stop at certain price levels. It’s not just a bunch of lines on a chart. It’s more complex than that. You can use this kind of information you get rid of that job you can’t stand earn a living, trading the market.

It’s actually not as difficult as you may think it be. Just about anybody can understand the concept of price action. It really comes down to the fact that most people don’t want to take the time to really grasp what makes the market move. They would much prefer to spend most of the time looking for myths like holy grail or some other magical indicator, that people can just slap on a chart and make millions of dollars. That’s not the way it really works. The faster you know that, the better. I had to learn that the hard way.

The real tricky part is to get somebody to really teach you how to look at the market in this manner. It can be difficult if you want to learn it for yourself. Let’s face it, if it was that simple, then all of us would be rich. It really comes down to the fact that you need some help with grasping the information and being able to execute it. This is where Trading in The Buff comes in. I know that you have probably purchased other courses and have been burned before. So have I. I know that it can hard telling which ones are for real and which ones are fake. So I thought I would try this course.

After reading the course and watching the videos, something amazing happened: I noticed that all the important information that has been staring at me right in the face. I used to trade with every conceivable indicator know to man. Thankfully with this course, it was the last forex training that I would ever need. I honestly thought that I would be jumping from one course to another for as long as I was a trader, but thanks to this course, I have realized that less is more. In fact, I don’t think you actually can see the market’s energy with your own eyes can you really call yourself a trader.