All price charts, regardless of market, speak a language all their own. If you have been trading for any length of time, you have likely heard people talk about price action trading, but did you know that you can actually learn the language of charts with price action trading? That’s right, you can learn to speak the language of a trading chart, just like you can learn to speak any foreign language. Learning to trade with price action is really nothing short of learning the language of price charts. Every chart speaks this same language, so once you learn it, you will have a skill that is transferable to any market that can be charted.
If you are reading this article, then you must understand the English language, regardless of whether or not it is your native tongue or even if you learned English as a secondary language from your original native tongue. If you speak only English, have you ever attempted to learn to speak Spanish, French, Russian or any other foreign language? If so, then you already know that learning a non native language is not an easy task. Some people may pick up foreign languages rather quickly, but the majority of people will have a very difficult time learning to speak any non native language. Learning a new language is simply not easy to do for the average person. It takes a lot of study time and practice, but more than anything, it takes practical real life experience.
If you are an English speaker only, and you go to a Country such as Mexico where Spanish is spoken daily by most people, you will have no other option but to immerse yourself in that language. Through practical experience hearing and speaking Spanish every day, over time, you will slowly begin to learn to speak that language. It will come slowly at first, with you learning the most common words and phrases, but only with continued practice and experience can you truly become fluent in Spanish or any foreign language for that matter. Price action trading is no different. If you start practicing, studying charts and watching them print in real time every day, you will slowly start to understand the language of a price chart. It will comes slowly at first, but with time and perseverance, you can become fluent in the language of a price chart. We call the language of price charts price action trading.
Price charts are not really as random as many people believe. Prices actually have a reason for doing everything that they do, and once you understand this and become fluent in the language of a price chart, you will know why prices are doing what they are doing, and you will then understand that these movements have a purpose and are not random at all. Just as any language has a set of rules that you must learn and follow if you are going to correctly speak the language, a price chart also has a set of rules to it’s language, so the first step in price action trading is to learn the specific rules of a price chart. The rules themselves are not that difficult and most anyone with common sense can learn them. What is difficult is learning to trust the rules and follow them, so it takes real time experience doing it every day in order to begin to understand and see the rules clearly.
Learning the rules of a price chart is step one, but where the real work comes is when you immerse yourself in the language of the price chart. Remember, to learn any new language, you must get real time experience, so you will need to watch prices print to a chart every day in real time. Where most new traders make their first mistake with this step is that they attempt to gain trading experience with real money, trading a live account. This is no different that trying to speak a non-native language without really understanding the language. How difficult would it be to ask for directions to a specific place in Russia if you didn’t know the language? Even if someone handed you an English written book on learning Russian, how hard would it be to ask someone directions and then be able to understand what they were telling you?
What if you were in a race to beat someone to a specific location in Russia and the only way you could get there was by asking for directions on the street? If you are not fluent in Russian, yet the person you were racing was, who do you think would get there first and win the race? Obviously it would be almost impossible to beat a Russian speaking person to a specific location in Russia by asking for directions only from Russian speaking tongues on the street. The Russian speaking person would likely make it to the destination long before you could even translate your English question into Russian tongue. You should understand that trying to figure out where prices are going on a price chart without understanding the language of a price chart is just as difficult. You are going to get beat by the experienced traders that speak the language of the charts every single time, so don’t even attempt to play that game with them. After all, skilled and professional chart readers are masters of the game, so the odds of you ever beating them at their game without similar skills is next to impossible.
So exactly how does a trader become a skilled and fluent speaker of a price chart? First you must learn the rules of the language, but then comes the hard part. You must immerse yourself in that language every day by getting real time trading experience. We already told you that doing this with real money is not possible, because you will simply lose your money to more skilled traders that are already fluent in the language of the charts. In order to get this experience and to be able to stick with it long enough to actually become fluent in the language yourself, you must get on a simulator and just watch prices print in real time and practice trading with a simulated account. How long this might take you to become fluent is different from person to person, but it will take most people a long time. It takes hard work, study and the ability to stay with it for a long period of time, just like it would if you wanted to learn any other foreign language, so don’t expect to learn this quickly. The key though is immersing yourself in the language daily and practicing it until you learn it.
If you would like to learn the language of charts with price action trading, then you have come to the right place. We have many articles and videos here on our website that will show you how to trade with nothing more than pure price action. It’s not easy, but if you have the time and are dedicated to it, you can learn the language of a price chart chart and learn to trade with price action. We have a price action trading manual that will teach you the rules and all of the basics of learning the language of a trading chart, and you can find that manual at http://priceactiontradingsystem.com/pats-price-action-trading-manual. Get your very own price action trading manual and begin learning the language of the charts and you will soon look at a price chart completely different than you ever have before!