How Price Action Trading Changed My Life
Today, I will give you a brief insight of my trading journey as well as where I am today. Before getting started to describe my journey, I just want to tell you a “Universal Truth” and that is “Trading is not a Get Quick Rich Scheme”. Which means that there is no “Magic Bullet” or “Holy-Grail” system out there which will give the chance to make millions in an easy way. Most people attract with trading system because they think that, Trading is an excellent way to earn money online. However, this is true, but for me, I was attracted to trading because of the financial freedom as well as another form of freedom such as freedom of bosses, freedom of office times (9 to 5), going to work every day, wearing formal dresses etc.
However, most people don’t realize in the early time of their trading careers is that, trading success is something that takes a different amount of time for different traders. Which means, the success time of trading differs for every individual trader. I have worked with thousands of traders and in my experience; almost all traders have unrealistic expectation of being able to quit their daily jobs at the beginning of their trading life. However, this not how it works. You will not be able to get success with the pressure of earning or when you need urgent money. Trading is a matter of learning, analyzing and planning. And with financial pressure, you will not be able to learn anything. I have spent three years struggling, just looking for a “Get Quick Rich” Trading system. Instead getting into it, I have just experienced huge ups and downs before I finally realized two critical but most important thing.
- I was trying in a too hard way, thinking and analyzing too much
- With financial pressure, I was making trading way more complicated than it need to be.
After a long struggling period, much trials and errors, realized that, I just needed to be a more minimalistic trader.
I was an extremely self-motivated market student, having Forex Training and study as I could fit into my life, in my first 3 years of trading life. I was fully determined to go with trading business and that’s why my focus was to learn as many trading strategies as possible with the common intention to make money and quit my day job. And like most traders my trading account statements were poor. I blew up many accounts to learn the do’s and dont’s of the trading system. The journey only turned when I discovered an excellent and extremely simple to identify trade setups on a RAW and stripped down price chart. That methodology is well known as price action trading.
When My Forex Trading Changed
When I finally recognized the repetitive behavior of the daily forex trading price charts, I just started to get success. There was a transition period in my trading career when I begin to move from 1 hour trading chart for 4 hours and then finally to the daily charts. After watching the daily charts for several months, I started to analyze and documenting the price action trading patterns and my observations. The initial trading plan included several things such as: basic trend identification, finding single and multiple bar price signals and plotting key levels. After practicing a long period, I found that the largest players in the market were also using horizontal lines to trade. In fact, when I also started to trade based on simple horizontal levels, my account started to soar.
Why Price Action?
Price action has removed all the noise, complexities and mess of the charts. The entire method is based around simple and concise trading guidelines. In fact, I know that markets rotate very often and rarely move in one direction for a very long period. Price action trading is not only your ability to read a chart, in fact, it’s also your ability to maintain a simplistic outlook on price and its expected direction.
The trading journey is typically a long one which is filled with a lot of ups and downs. However, there is a serious argument about do’s and dont’s of trading or any business. You need to learn to read price action. Don’t learn just a rigid trading system that does not teach you anything about the market’s dynamics.