Friday, October 10, 2008

Nothing but price action



There are thousands of very successful traders in the market. They are unique in their trading style.They think differently, trade different instruments, use different time frame, different indicators.But they have one thing in common and that is they are expert in recognizing price action and reason behind the action.Price action discounts every thing-this means that the actual price is an expression of everything that is known to the market that could affect it, for example, supply and demand, political factors and market sentiment.
Successful traders don't just look at the charts and indicators; they try to understand the psychology behind the action. As we all know trader don’t trade stocks or forex , they trade other traders .If we understand emotions, anger ,greed involve in a trade we will be able to trade that with great success.

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