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July 13th, 2011 09:40 PM
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Price Action Trading: 5 Reasons Why Price Action Is The Strategy
Chances are you've heard the term price action trading before, but do you understand what it really means and what is actually involved in price action trading? Here's 5 simple concepts within price action trading that set it apart from other trading strategies:
1: Price Action Trading Is A Common Sense Approach To Trading
Have you ever tried out a strategy that uses so many different indicators and algorithms that you basically need 3 PhD's just to understand the basics of it? We've all been there, done that, and most of us couldn't quite get that to work so well for us. That isn't price action. Price action actually makes sense, at least in our course it does, because it's explained in a common sense way and it truly is the common sense approach to trading. There's no other method out there that uses such simplistic market principles that actually make sense and allow us to actually understand not just what we are doing, but WHY we are doing it.
2: Price Action Trading Is Simple But Not Easy
People always confuse easy with simple. Nothing in trading is easy--there's billions and billions of dollars on the line so don't think you can turn to trading to get easy money out of the market (at least not initially). But price action trading is simple-- as we mentioned in point 1 it is common sense based, and the actual concepts could be understood by a high school student. It doesn't take much to actually understand price action, but the difficulty comes in actually having the discipline and patience to apply it to your actual trading.
3: Price Action Trading Works In Any Market
Stocks, Forex, Futures, Commodities, Airplane Engineering, Gold, Silver, Oil, Engineering-- people from all these markets (and professions) have taken our course and gave us raving reviews because price action works in any market--it really works with anything that has chartable data which is why we saw some engineers take our course. But for trading it truly does work in any market, and I can personally attest to this after trading in multiple markets and working with traders in literally every market from 6 of 7 continents (we still haven't found that lone trader in Antarctica but we would love to work with you!!)
4: Price Action Trading Is Time Tested And Timeless
What other strategy has been around basically since the start of financial markets and what other strategy will work well into the future like price action? Price action focuses on core market principles in finance and economics that exist literally in every market and will always exist as long as the markets continue to exist as we know them. Crowd psychology, support and resistance, panic and fear--these all exist in every market and price action helps explain why they happen and teaches us how to place our trades based on these market events.
5: Price Action Trading Is The Backbone Of All Systems
Whether you're one of those PhD trades with 5,000 indicators, a fundamental trader, or a pure price action trader, at the end of the day price action trading truly is the backbone of virtually every trading system. There are very few systems out there that don't assume you already have knowledge of price action and how the market actually works. We took it one step further and made price action our whole strategy which works great, but no matter what your strategy of choice may be, price action is and will be the backbone of it.
We're a firm believer in price action trading, however it truly isn't for everyone. There's some "traders" out there that still are in search of that holy grail of trading or that system that they can flick the on switch, play a round of golf, and come home to big profits. Price action isn't for these people because they won't put in the time and effort necessary to become a price action trader. But once you end your wild goose hunt and realize what you're searching for doesn't exist, price action may very well be for you, too. Hundreds of traders have said the best place to get started and finished with learning about price action is our Advanced Price Action Trading Course-- are you ready to make a dramatic difference in your trading?
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