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Price Action Trading System's
A Forex Strategy With No Indicators?
By Nial Fuller
I'm sure you have seen a ton of strategies out there that involve an indicator in one form or another. There are literally hundreds of indicators to use. A lot of traders use multiples of them cluttering up there charts, its frustrating to see this issue cloud traders screens and thoughts, and honestly, there's no need for it to have happened in the first place. Indicators are far from trading reality.
I am here to tell you of a little known secret of the institutional traders. They don't use them! What they do is follow the foot print of money. Also known as Price Action. Using this strategy gives them an edge that no indicator can give a trader. Rarely you might find them using a moving average or two but that is it. The plain chart will tell you everything you need to know is what they all will tell you.
We have all heard of support and resistance right? Well support and resistance is not a line on the chart. What they are is a price zone where there are a bulk of orders. When price reaches these areas it will make an obvious turn in direction. Looking at any chart over a period of time you will see this clearly. Watch a one minute chart for example. Price seems to move erratically up and down right? Notice where the price makes a turn at. More times than not the turn happens in the same general area as where it may have turned say 30 minutes before. This is true support or resistance. One hint I can give you is the violent turn in price is the more valid the support or resistance, a quick snap kind of behaviour signals that the level is extremely valid.
Keep in mind that the smaller the time frame is. The less reliable the support or resistance is. Unless of course the larger time frames agree.
We have not even touched on the more advanced yet simple strategies used to trade by the larger players in the forex market, we will leave that for a more in depth article on this topic. This is merely a wake up call for struggling traders to start cleaning up their charts, and commence writing a genuine trading plan using raw price action data
To learn more about Price Action techniques I suggest you take a course that gives you more details on the subject. I can just about guarantee you will be on your way to more success.
Nial Fuller has been successful Forex trader for many years. He started studying price action when he was 15. Now at 25 he has traded at a major firm for over 6 years. To get his free video tutorials visit this link Trading with Price Action.
Article Source: http://EzineArticles.com/?expert=Nial_Fuller
Article Source: http://EzineArticles.com/2747975
as an individual trader actually has a lot of similarities to most traditional businesses. Here is a very simple analogy that I like to use that helps compare trading for a living to other businesses. If you owned one hot dog cart (a traditional business), and worked that hot dog stand exclusively, as the owner and the operator, you would be trading hot dogs for the cash that your customers pay for the product. In a sense, you are also trading for a living, and you must create Trading Rules that you follow when dealing with your customers. Here's where the business structures differ. As a Hot dog vendor, if you wished to grow your business, you would have to open a new hot dog stand that is run by an employee that you hire. This changes your Trading Rules. Your profit shrinks for the second location because you now have an employee to pay. As a Futures trader who is Trading for a Living, all I must do to grow my business is modify my trading rules to trade a larger share size. There is no additional labor or major expense to grow my business. The risk profile should not change for me, nor should it change for the hot dog vendor as long as certain conditions are met prior to the decision to grow each business. Additional Risk in any business happens when businesses' decide to grow too fast. As a Futures Trader, if I decide to trade a larger position size because my account size (cash on hand) has grown, then that is natural growth. I am trading larger but the percentage of my account at risk has not changed. I am trading with the same trading rules that I always have, but with a larger share size. As a traditional business, choosing to grow because cash on hand has increased is also natural growth. So the short answer about what a Professional Trader earns is no different than the same question asked about any scalable business profession with Trading Rules. I am sure there are food cart vendors with 300 carts on the street. If you go to a party and inquire about someone's profession only to hear he's a street food vendor, don't move to the other side of the room. He could have 300 carts or just one! Likewise, if you hear that he's is trading for a living, don't get too excited. His trading rules may be written to trade 1 contract per trade to supplement his retirement income. In any business, it all depends on you!! Follow these links to learn more about my Trading Rules or if you are interested in Trading for a Living. Thanks for reading and Make it a Profitable Day! Shawn W. Cooke How Much Does a Professional Trader Earn? by Shawn W. Cooke 8/01/11 I can't tell you how many times I get asked this question. As a professional Futures Trader who is Trading for a Living, I can give you a solid answer but, the truth is, there are many layers to this question. The short answer is that the sky really is the limit depending on the Trading Rules you create for yourself. The average trader on Wall Street earns between $400,000 and $800,000 per year. But trading for a living as an individual Futures trader (from home like me) is not like trading on Wall Street. Trading for a living as an individual trader actually has a lot of similarities to most traditional businesses. Here is a very simple analogy that I like to use that helps compare trading for a living to other businesses. If you owned one hot dog cart (a traditional business), and worked that hot dog stand exclusively, as the owner and the operator, you would be trading hot dogs for the cash that your customers pay for the product. In a sense, you are also trading for a living, and you must create Trading Rules that you follow when dealing with your customers. Here's where the business structures differ. As a Hot dog vendor, if you wished to grow your business, you would have to open a new hot dog stand that is run by an employee that you hire. This changes your Trading Rules. Your profit shrinks for the second location because you now have an employee to pay. As a Futures trader who is Trading for a Living, all I must do to grow my business is modify my trading rules to trade a larger share size. There is no additional labor or major expense to grow my business. The risk profile should not change for me, nor should it change for the hot dog vendor as long as certain conditions are met prior to the decision to grow each business. Additional Risk in any business happens when businesses' decide to grow too fast. As a Futures Trader, if I decide to trade a larger position size because my account size (cash on hand) has grown, then that is natural growth. I am trading larger but the percentage of my account at risk has not changed. I am trading with the same trading rules that I always have, but with a larger share size. As a traditional business, choosing to grow because cash on hand has increased is also natural growth. So the short answer about what a Professional Trader earns is no different than the same question asked about any scalable business profession with Trading Rules. I am sure there are food cart vendors with 300 carts on the street. If you go to a party and inquire about someone's profession only to hear he's a street food vendor, don't move to the other side of the room. He a
By Nial Fuller
I'm sure you have seen a ton of strategies out there that involve an indicator in one form or another. There are literally hundreds of indicators to use. A lot of traders use multiples of them cluttering up there charts, its frustrating to see this issue cloud traders screens and thoughts, and honestly, there's no need for it to have happened in the first place. Indicators are far from trading reality.
I am here to tell you of a little known secret of the institutional traders. They don't use them! What they do is follow the foot print of money. Also known as Price Action. Using this strategy gives them an edge that no indicator can give a trader. Rarely you might find them using a moving average or two but that is it. The plain chart will tell you everything you need to know is what they all will tell you.
We have all heard of support and resistance right? Well support and resistance is not a line on the chart. What they are is a price zone where there are a bulk of orders. When price reaches these areas it will make an obvious turn in direction. Looking at any chart over a period of time you will see this clearly. Watch a one minute chart for example. Price seems to move erratically up and down right? Notice where the price makes a turn at. More times than not the turn happens in the same general area as where it may have turned say 30 minutes before. This is true support or resistance. One hint I can give you is the violent turn in price is the more valid the support or resistance, a quick snap kind of behaviour signals that the level is extremely valid.
Keep in mind that the smaller the time frame is. The less reliable the support or resistance is. Unless of course the larger time frames agree.
We have not even touched on the more advanced yet simple strategies used to trade by the larger players in the forex market, we will leave that for a more in depth article on this topic. This is merely a wake up call for struggling traders to start cleaning up their charts, and commence writing a genuine trading plan using raw price action data
To learn more about Price Action techniques I suggest you take a course that gives you more details on the subject. I can just about guarantee you will be on your way to more success.
Nial Fuller has been successful Forex trader for many years. He started studying price action when he was 15. Now at 25 he has traded at a major firm for over 6 years. To get his free video tutorials visit this link Trading with Price Action.
Article Source: http://EzineArticles.com/?expert=Nial_Fuller
Article Source: http://EzineArticles.com/2747975
as an individual trader actually has a lot of similarities to most traditional businesses. Here is a very simple analogy that I like to use that helps compare trading for a living to other businesses. If you owned one hot dog cart (a traditional business), and worked that hot dog stand exclusively, as the owner and the operator, you would be trading hot dogs for the cash that your customers pay for the product. In a sense, you are also trading for a living, and you must create Trading Rules that you follow when dealing with your customers. Here's where the business structures differ. As a Hot dog vendor, if you wished to grow your business, you would have to open a new hot dog stand that is run by an employee that you hire. This changes your Trading Rules. Your profit shrinks for the second location because you now have an employee to pay. As a Futures trader who is Trading for a Living, all I must do to grow my business is modify my trading rules to trade a larger share size. There is no additional labor or major expense to grow my business. The risk profile should not change for me, nor should it change for the hot dog vendor as long as certain conditions are met prior to the decision to grow each business. Additional Risk in any business happens when businesses' decide to grow too fast. As a Futures Trader, if I decide to trade a larger position size because my account size (cash on hand) has grown, then that is natural growth. I am trading larger but the percentage of my account at risk has not changed. I am trading with the same trading rules that I always have, but with a larger share size. As a traditional business, choosing to grow because cash on hand has increased is also natural growth. So the short answer about what a Professional Trader earns is no different than the same question asked about any scalable business profession with Trading Rules. I am sure there are food cart vendors with 300 carts on the street. If you go to a party and inquire about someone's profession only to hear he's a street food vendor, don't move to the other side of the room. He could have 300 carts or just one! Likewise, if you hear that he's is trading for a living, don't get too excited. His trading rules may be written to trade 1 contract per trade to supplement his retirement income. In any business, it all depends on you!! Follow these links to learn more about my Trading Rules or if you are interested in Trading for a Living. Thanks for reading and Make it a Profitable Day! Shawn W. Cooke How Much Does a Professional Trader Earn? by Shawn W. Cooke 8/01/11 I can't tell you how many times I get asked this question. As a professional Futures Trader who is Trading for a Living, I can give you a solid answer but, the truth is, there are many layers to this question. The short answer is that the sky really is the limit depending on the Trading Rules you create for yourself. The average trader on Wall Street earns between $400,000 and $800,000 per year. But trading for a living as an individual Futures trader (from home like me) is not like trading on Wall Street. Trading for a living as an individual trader actually has a lot of similarities to most traditional businesses. Here is a very simple analogy that I like to use that helps compare trading for a living to other businesses. If you owned one hot dog cart (a traditional business), and worked that hot dog stand exclusively, as the owner and the operator, you would be trading hot dogs for the cash that your customers pay for the product. In a sense, you are also trading for a living, and you must create Trading Rules that you follow when dealing with your customers. Here's where the business structures differ. As a Hot dog vendor, if you wished to grow your business, you would have to open a new hot dog stand that is run by an employee that you hire. This changes your Trading Rules. Your profit shrinks for the second location because you now have an employee to pay. As a Futures trader who is Trading for a Living, all I must do to grow my business is modify my trading rules to trade a larger share size. There is no additional labor or major expense to grow my business. The risk profile should not change for me, nor should it change for the hot dog vendor as long as certain conditions are met prior to the decision to grow each business. Additional Risk in any business happens when businesses' decide to grow too fast. As a Futures Trader, if I decide to trade a larger position size because my account size (cash on hand) has grown, then that is natural growth. I am trading larger but the percentage of my account at risk has not changed. I am trading with the same trading rules that I always have, but with a larger share size. As a traditional business, choosing to grow because cash on hand has increased is also natural growth. So the short answer about what a Professional Trader earns is no different than the same question asked about any scalable business profession with Trading Rules. I am sure there are food cart vendors with 300 carts on the street. If you go to a party and inquire about someone's profession only to hear he's a street food vendor, don't move to the other side of the room. He a