While this is a very simple article about using price action to day trade, we thought it was great for no other reason than it’s straight to the point and easy to understand. It sums up everything we have had to say here at price action trading systems, and that is the fact that the only way to consistently make money day trading the markets is to learn to day trade with price action. What does “learning to day trade with price action” consist of really? Well, it’s learning to read a price chart and the inherently consistent rules that come with it.
Every market has a personality, and it’s helps to learn the personality and tendencies of that particular market, but in the end, price action is nothing more than the combined fear and greed of hundreds and thousands of traders, so once you learn how to read and chart, you will know what to expect 90% of the time in advance, and that gives you the edge you need to make money when trading. John Templeton posted the following in an article at www.ezineArticles.com and had the following to say:
When it comes to learning day trading, you have to be aware of a few things. For starters, you want to be aware of the fact that only 5% of day traders out there are actually making money.
Please don’t be depressed after reading that. I don’t what you to think that its impossible to day trade successfully. I only point out this statistic because there are so many people that don’t have the proper determination to succeed in this business.
There actually isn’t a big secret that is causing such a big separation between the haves and the have nots. The only real difference between the successful and the unsuccessful is the fact that most successful traders really want to take the time to learn and grasp the intricacies of the market.
Meanwhile, the vast majority of the traders who are struggling want a shortcut. They are looking high and low for that ultimate holy grail indicator that will make them rich just by putting up arrows and down arrows to signify buy or sell.
I hate to break the news to many people but the holy grail does not exist. You are especially not going to find it in your indicator menu on your charting platform.
The only kind of holy grail come from within you. YOU have to be able to understand the market, and what it’s doing. If you want to use technical analysis, it all begins with understanding price movement, and price patterns. Once you have a grasp of that, you can be able to predict future price movement, and that’s where the fun begins.
John Templeton has been a successful Forex trader after learning how to trade price action. Once he understood that all he needed to trade Forex was on a plain chart with no indicators, his profits soared. Learn Forex the right way.
Again, there are no secrets are even much information given by John in regards to “how” to use price action to trade, but all the same, we thought the article was great in the fact that he tells the simple truth, which is the fact that until you learn to read a price chart, you will very likely never make a dime day trading any market. The key is learn to read a price chart and understand what prices are doing and what prices are telling you as they print to a chart.
Do you remember the stories about the old ticker readers and how they were able to make money reading the ticker? Price action is the ticker of today and now you don’t have to be as good as they were, because you have a picture of it in front of you at all times on your chart, but reading a price chart is no different than reading the ticker of the old days, it’s just better and easier. It’s not hard to learn, but it’s not easy either and some people take longer to learn it than others. Rest assured though, until you learn to trade with price action, you will never learn to trade profitably in the long term!
Original article was written by: John_Templeton