Simple "Price Action" Trading That Works
(Edited 17th April 2012)
In 2001, I was introduced to Forex trading by a friend who had bought a $10,000 black box trading system. The idea of making money trading a robot was irresistible... I was hooked! Unfortunately, the system did not live up to expectations, but I loved the idea and threw myself into Forex with a passion. I spent every spare moment learning everything I could.
Having graduated with a bachelor of engineering with first class honours, I went to work developing dozens of trading systems based on ideas I had researched. Unfortunately, I also deviated away from the founding principle of trading... keep is simple! In 2009, I made the decision to learn how to trade a naked chart... or what most people call, price action trading. This began extensive research on price action trading.
What I found was that most people were trading price action via simple candle stick patterns or common price structure patterns which generally suffered either a poor risk-to-reward ratio or a poor win-to-loss ratio. Additionally, the methods failed to explain the underlying market structure. Why did price stop and reverse there? What will price do next? What options does price have from here?
I also wanted to learn this from a true guru. Someone who lives and breathes the market. After following some average paths I eventually found what I was after and invested in some one-on-one tuition. It was by far the best investment I have made, ever. That person is a member of Forex Factory, and is a phenomenal trader, and goes by alias WMD.
Much I what I have learnt is unique and I should not post it. It should really come direct from WMD into Forex Factory. None the less, I want to use the journal to record some of my thoughts and observations, though I will limit the content I post. WMD has recently started a trading group (of which I am a happy member) for those that wish to go well beyond what WMD has posted publicly at Forex Factory.
Please note, the first 10 posts are old, from when I started a journal a couple years back. Feel free to skip to post 11.
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(Edited 17th April 2012)
In 2001, I was introduced to Forex trading by a friend who had bought a $10,000 black box trading system. The idea of making money trading a robot was irresistible... I was hooked! Unfortunately, the system did not live up to expectations, but I loved the idea and threw myself into Forex with a passion. I spent every spare moment learning everything I could.
Having graduated with a bachelor of engineering with first class honours, I went to work developing dozens of trading systems based on ideas I had researched. Unfortunately, I also deviated away from the founding principle of trading... keep is simple! In 2009, I made the decision to learn how to trade a naked chart... or what most people call, price action trading. This began extensive research on price action trading.
What I found was that most people were trading price action via simple candle stick patterns or common price structure patterns which generally suffered either a poor risk-to-reward ratio or a poor win-to-loss ratio. Additionally, the methods failed to explain the underlying market structure. Why did price stop and reverse there? What will price do next? What options does price have from here?
I also wanted to learn this from a true guru. Someone who lives and breathes the market. After following some average paths I eventually found what I was after and invested in some one-on-one tuition. It was by far the best investment I have made, ever. That person is a member of Forex Factory, and is a phenomenal trader, and goes by alias WMD.
Much I what I have learnt is unique and I should not post it. It should really come direct from WMD into Forex Factory. None the less, I want to use the journal to record some of my thoughts and observations, though I will limit the content I post. WMD has recently started a trading group (of which I am a happy member) for those that wish to go well beyond what WMD has posted publicly at Forex Factory.
Please note, the first 10 posts are old, from when I started a journal a couple years back. Feel free to skip to post 11.
d
