Why do so many traders go broke???????
The house advantage!!!!
What is the house advantage???????
The house has all of the money and knows and makes the rules. The thing about the rules is that they seem random as if they are being made up as we are going along. That is why the proper interpretation of the language of the charts is so essential to your trading success. Your indicators and oscillators are only following where the price lead. How much better is it to be able to interpret what is going on in the market long before your indicator does? It can be done and is done skillfully everyday by people who understand and know the language the charts speak. What is this secret, strange, mysterious, language that the charts speak???
PRICE ACTION!!!!!!!! What price is doing and has done, along with the natural rhythm of the market.
By the time your indicators tell you what your price is doing, you are already behind those who interpreted price action long before your indicator/oscillator clued you in. Have you ever waited for your indicator/oscillator to tell you to get in only to discover that you have missed a great deal of the move already. Becoming fluent in the language of price will help you to avoid much of that.
THERE IS NO PERFECT FOREX SYSTEM, it doesn't exist, but studying and learning the language of your charts will put the odds in your favor, and help you to glean a sweet little profit in the process.
There are no short cuts here. You can learn the language and get an advantage, or you can rely on the news, support/resistance, trend lines or other indicators/oscillators. I am a huge fan of support/resistance and trend lines, but gaining an understanding of price action will give you a clear advantage.
I am not bashing indicators, but you need to understand what they are. They are merely assistants and interns to the PRESIDENT OF PRICE ACTION.
Is PRICE ACTION ENOUGH??????
NO!!!!!!!
Like the president, your Price action needs a cabinet that can support it. That is where your indicators and oscillators come on. They are your support staff. Once you master PRICE ACTION, the other things become natural assistants.
Price action will not tell you everything, it will not tell you how far price is headed, and how long the destination might be. That is where support/resistance, and long term trend line comes in.
At the end of the month, always see where your price is headed, then plan your strategy accordingly, knowing that most of the time you will have a bounce on your weekly candle. DO NOT SHORT OFF OF THE LOW OF THAT LAST MONTHLY CANDLE, BECAUSE MOST OF THE TIME, YOU WILL END UP ON THE WRONG SIDE OF THE TRADE.
THAT IS WHY LEARNING YOUR MARKET RHYTHM IS SO IMPORTANT!!!
PRICE ACTION ALONG WITH FRIENDS CAN TAKE YOU WHERE YOU WANT TO BE.
You may use any indicator/oscillator that your are comfortable with. Just remember that they are the cabinet to the PRESIDENT OF PRICE ACTION!!!!!!!!!!!
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