{"id":616,"date":"2012-09-11T19:35:45","date_gmt":"2012-09-11T19:35:45","guid":{"rendered":"http:\/\/priceactiontradingsystem.com\/?p=616"},"modified":"2026-08-14T22:40:37","modified_gmt":"2026-08-15T03:40:37","slug":"reduce-information-overload-by-using-price-action-trading-strategies","status":"publish","type":"post","link":"https:\/\/priceactiontradingsystem.com\/reduce-information-overload-by-using-price-action-trading-strategies\/","title":{"rendered":"Reduce Information Overload By Using Price Action Trading Strategies"},"content":{"rendered":"

One of the biggest problems new traders or even unprofitable traders face each day is information overload. \u00a0When you combine this information overload with the belief that indicators offer some type of magical entry formula, all you really get is confusion, which leads to losses. \u00a0It’s important that you understand that less is better when it comes to day trading. \u00a0You can actually\u00a0reduce information overload by using price action trading strategies<\/strong>.<\/p>\n

\"Information<\/a>
Information Overload While Day Trading
(pewtopractice.
wordpress.com)<\/figcaption><\/figure>\n

I know this for a fact, because it used to happen to me. \u00a0I would read up and study some sure fire trading strategy, which usually included the use of one or more indicators. \u00a0In the end, I would look at the chart, and then look at my indicators. \u00a0One indicator would look great for a long entry, while the other wasn’t showing anything or even worse, it was showing a short position. \u00a0This would simply lead to adding another indicator to help clarify the confusion, and once again, it would give another conflicting signal.<\/p>\n

In the end, I had no idea what the chart was telling me at all, and I had nothing but confusion in regards to what the indicators were telling me. \u00a0By the time I would make up my mind to enter a trade, it would all be over and things would be changing. \u00a0It wasn’t until I learned how to read a naked price chart that I really discovered just how wrong I had been in trying to trade with indicators. \u00a0If you learn to read a price chart, you will understand what is going on in front of you with prices, and even better, you will have a much clearer perspective of where prices are heading next in the short term.<\/p>\n

If you are using anything but a single chart to read the price action and trade from, then you are likely suffering from information overload yourself. \u00a0This is a common problem for new and unprofitable traders, so you are not alone if this sounds like one of your hold ups in reaching profitability in day trading. \u00a0You don’t need an expensive set of trading monitors and you don’t need the holy grail of trading indicators to make money while day trading. \u00a0These items will do nothing more than complicate your trading and make it harder for you to learn the one key way that you can actually make money as a day trader, and that’s by learning to read a price chart.<\/p>\n

Below is an excerpt from an article that we found at www.thefibdoctor.com. \u00a0Here is what they had to say about information overload and day trading success.<\/p>\n

Dave, this is Brian. You gotta come over here and check out my new set up.\u201d Brian is my neighbor and he started trading about a year ago and like so many of us he has struggled to keep his head barely above water. We were talking a few weeks back and he was telling me he was gonna have to stop trading and get a second job to catch up his mortgage and car payments. Brian was trading part time and working full time and losing his butt. Sound familiar ? Anyway, he sounded like a kid in Junior High with a new girlfriend on the phone so I told him I\u2019d scoot over there right now. I figured he had bought one of those 60 inch plasma TV\u2019s with the Dolby\u00ae surround. I was kinda excited too because now I could watch my NASCAR races at his house !<\/p>\n

Brian\u2019s office\/den\/playroom is a converted basement with an entrance off the driveway so I let myself in. \u201cHey man, where you at?\u201d I heard him holler through the closed door \u201cin here Dave\u201d so I open the office door and there it was. Holy freakin\u2019 #$%^! Un_freakin_believable ! Brian\u2019s father was retired from NASA and I thought surely they had set up a space shuttle command center. There were at least 2 computers that I could see and one, two, three, four, five, six monitors! Every monitor had some kind of chart running in it. I saw time and sales windows, market breadth, TICK, TRIN, VIX, BANK, TRAN and on and on and on. Brian was smiling like a rat in a cheese factory.<\/p>\n

Now at this point, I\u2019m really confused. Just a few weeks ago Brian told me he was gonna have to stop trading and maybe get a second job to catch up his mortgage and car payments because he was losing so much in the stock market. Now I\u2019m standing in his \u201coffice\u201d looking at a 6 monitor set up that looked like something you\u2019d see on the floor of the New York Stock Exchange. Ok, there\u2019s only 2 possibilities here. Either Brian made a ton of money in the stock market last week or he wanted 6 monitors so it would be easier to see how much money he was losing. So I asked him what the deal was with all the new stuff. His reasoning was that he could trade better if he had more information and for that he would need more monitors. Well, me and Brian had a \u201ccome to Jesus meeting\u201d and Jesus wasn\u2019t there ! For those of you not familiar with Southern terminology that means we had a really heated discussion LOL! \u00a0You can read the rest of the original article here<\/a>.<\/p>\n

This was a particularly interesting article, so be sure to click over and read the entire thing. \u00a0I thought it was a great piece, because it reminded me of my early days of trading. \u00a0I only wish I knew then what I know now, and that’s the fact that all you need to make money while day trading is a single screen, with limited information. \u00a0The only way to actually make money in the markets as a day trader is to learn how to read a price chart, so stop wasting your time with the expensive toys and worthless indicators. \u00a0Learn how to read a price chart properly and you will at least be on the correct path to becoming a profitable day trader, but best of all, you can reduce information overload by using price action trading strategies<\/strong> that actually work. \u00a0Learn how you can become a price action trader by checking out our information at\u00a0https:\/\/forestgreen-chicken-354304.hostingersite.com\/pats-price-action-trading-manual\/<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

One of the biggest problems new traders or even unprofitable traders face each day is information overload. \u00a0When you combine this information overload with the belief that indicators offer some type of magical entry formula, all you really get is confusion, which leads to losses. \u00a0It’s important that you understand that less is better when 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