The most profitable price action environments (defined trends and defined ranges) are the most difficult to trade. Trading education companies, authors, web sites with free information, and experienced profitable traders all provide instruction for how to profit from these environments.
Someone recently questioned why any profitable trader would give away their trading methods, thereby creating competition.
From reading this forum over the years, the consensus appears to be that anyone teaching a method or writing about a method is a loser who’s trying to profit from selling education to newbies or is providing misleading information to avoid creating competition.
I’m sure there are plenty of strategies where competition or the very revelation of one’s edge could dilute the edge.
Price action is not one of them, which is why advanced and detailed education for the technical analysis of price action is available on the cheap.
Price action allows traders to run with the herd when conditions favor the herd (defined trend) and to fade the herd when conditions favor the predator (tradable range/chop).
The main reason why most retail traders lose is because they are not prepared. They’ve never taken the time to learn about profitable trading methods and convert such methods into a personal business plan for trading. They have no idea how to apply methods of trading that places the odds of profitability over each series of N trades in their favor.
However, there’s also the paradox in which traders who are fully prepared technically, who have everything necessary to trade including a profitable trading plan, simply fail to execute their plans. The reason why most of these traders, many of who have traveled very far along the path toward consistent profitability, fail is because profitable trading “feels” very counter-intuitive at the hard right edge, causing the ill-prepared to gamble their capital away and causing the well-prepared to second guess the methods that work so beautifully when applied after hours with no real capital at risk to invoke emotion-driven behavior.
This morning in crude oil (CLH4) price catches the 60-min shorts off guard in pre-market, finding ready support at 96.00. When the pit opens price has retraced the entire move down, breaks the shallow descending trend line across the pre-market highs, and then breaks through the overnight high as well.
At this point who’s profitable? Who’s in pain and nervous? The price action has signaled the early stage of what may become a well-defined uptrend and the bulls have the upper hand, monetarily and psychologically.
Now look at the following charts and compare the experienced price action trader’s view to your own.
Someone recently questioned why any profitable trader would give away their trading methods, thereby creating competition.
From reading this forum over the years, the consensus appears to be that anyone teaching a method or writing about a method is a loser who’s trying to profit from selling education to newbies or is providing misleading information to avoid creating competition.
I’m sure there are plenty of strategies where competition or the very revelation of one’s edge could dilute the edge.
Price action is not one of them, which is why advanced and detailed education for the technical analysis of price action is available on the cheap.
Price action allows traders to run with the herd when conditions favor the herd (defined trend) and to fade the herd when conditions favor the predator (tradable range/chop).
The main reason why most retail traders lose is because they are not prepared. They’ve never taken the time to learn about profitable trading methods and convert such methods into a personal business plan for trading. They have no idea how to apply methods of trading that places the odds of profitability over each series of N trades in their favor.
However, there’s also the paradox in which traders who are fully prepared technically, who have everything necessary to trade including a profitable trading plan, simply fail to execute their plans. The reason why most of these traders, many of who have traveled very far along the path toward consistent profitability, fail is because profitable trading “feels” very counter-intuitive at the hard right edge, causing the ill-prepared to gamble their capital away and causing the well-prepared to second guess the methods that work so beautifully when applied after hours with no real capital at risk to invoke emotion-driven behavior.
This morning in crude oil (CLH4) price catches the 60-min shorts off guard in pre-market, finding ready support at 96.00. When the pit opens price has retraced the entire move down, breaks the shallow descending trend line across the pre-market highs, and then breaks through the overnight high as well.
At this point who’s profitable? Who’s in pain and nervous? The price action has signaled the early stage of what may become a well-defined uptrend and the bulls have the upper hand, monetarily and psychologically.
Now look at the following charts and compare the experienced price action trader’s view to your own.
