It seems like when most traders who are trying to learn to trade forex successfully always use more. More indicators, more gimmicks, more trading robots, etc…When they finally realize that 95% of all forex traders are unsuccessful, they come to the realization that all these gimmicks can’t help them. This is when they should realize they should look at forex trading with a less is more kind of approach.
If you took the time to study who the most successful traders are, you’ll realize they are the ones that understand price action. Understanding price action has nothing to do with stochastics or trading robots. It has to do with understanding the energies of the market. The market is a living, breathing thing. Once you can understand the cause and effects of price movements, then you can truly forecast the the future direction of the price.
This may seem very complicated, but it’s really not. The only thing is that you’ve got to get out of that indicator driven mindset. Indicators do nothing but clutter. As a new trader that’s the last thing in the world you need. You want to be able to see the market in all its glory, not though the translation of a stochastic indicator.
The next time you hear about a system that uses loads of indicators, all you have to do is ask yourself, what does this tell me about the market? Do I understand what all these indicators mean? If you can’t answer these questions (don’t worry, you’re not alone) then you need to take a pass.
Jim Buhs has been a successful forex trader after learning how to trade price action. He was able to have forex trading success after he cleaned his charts of indicators, and his profits soared.
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