Its no secret that 95% of all new forex traders will inevitable fail and leave this market after losing some or all their money. What knowledge can we gain from this well know fact? Lets examine what the common denominator is between those who fail to better use this statistic of the forex market.
When entering this market most traders search for a forex trading system, do they not? You yourself may have searched for hours for the promise of forex riches. After many hours of searching maybe even days, you stumble on to the best system, with the newest proprietary indicators that promises riches. You then buy the product. Did it live up to the hype, have they fulfilled any of the advertised promises? Of course not or you wouldn’t still be searching! The process is then repeated over and over until you either become so fed up with scams you quit or you lose all your money because of these so called magic proprietary indicators or software. So here are the facts we have up to now, 95% or more fail in this market, and most new traders use and buy systems containing the “magic” combination of indicators or software. Do you see the connection between systems based on indicators and software and the alarming failure rate of new forex traders?
Now Im not saying all forex indicators and all software is bad and produces negative results, but they have to be kept in perspective! Indicators only tell you what the price action has already told you. So when you wait for confirmation on your MACD cross or an overbought over sold indicator do you find you’re always buying bottoms and selling tops? The fact is, price action is king. There is nothing else that can predict short term price action in day trading or even long term position trading systems with equaled reliability. Ask yourself this, do you think bank traders around the world have some magic combination of indicators that they use or do you think that they have a solid understanding of price movement? I don’t think I have to even answer that question
So where do you go from here? Have you ever wanted to understand why the market moves, and more importantly how to quickly recognize high percentage setups that have solid risk reward? More importantly because most people use indicators, when you use primarily price to signal entries and exits you often time can get in well before the first move which allows very tight stops as well as higher risk reward because of the tight stops.
If you have been struggling in this market and tried everything and just can’t seem to make it work, why not try something the big boys use…price action