Follow the price: The power of the simple

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Finding a method to rely on is one of the two biggest difficulties the trader has in training, the second is not sabotaging himself. All existing methods have advantages and shortcomings, lovers and critics, but let’s start with something: The perfect method does not exist, nothing in the trading is ideal, everything good has a price that is paid … casino tell the detractors, players tell us , Especially those who lose consistently or who have not tried. It may be that we are players, the truth I as a trader no longer wear in such discussions, it is more, nor am I interested in the label that we can put those who for any reason fear or hate trading.

Among the many attempts I made to learn trading in my early stages, I found something in common: 1) Everyone was trying to predict what is going to happen and 2) Everyone was trying to make profits based on expectations rather than actually. Due to the above, regardless of the instrument of analysis and decision making, we started badly, the market is not predictable. Faced with this reality, the use of any indicator, count of cycles, reading patterns of candles ends up being inofficious. THE PREDICTION DOES NOT WORK

How to solve the problem then? The Japanese Candle reading is powerful if you understand it well. This implies not wanting to predict price movements. The price action is powerful, it works, because it does not try to predict anything, only tracks are expressed through candles. These footprints are only of 3 types: Demand, offer or indecision. When the trader learns to read the candles, not to try to guess what is coming based on a pattern and his personal expectations, it is what helps him advance in his formative and trader – trader process. Leaving the conjugation in the future (EURUSD is going up) and changing it by thinking in gerund (EURUSD is going up) simplifies things, it ends the need to guess where the prices will go and we only focus on where they are heading in The present moment. This way of thinking is the first step in understanding price action. Then select an appropriate time frame for your expectations and negotiation facilities, establish risk policies and start the technical work.

At we work in a very simple way, so elementary that one can not believe it to be so. First you ask yourself what is the price doing? This answer gives us the direction in which it is moving, bullish, bearish or lateral. Then knowing the most likely direction, ie follow the trend, we favor floor shopping, roof sales or side ends, something that anyone who knows technical analysis applies, are mantras for the trader. The second question is Where is the price? The answer is elemental, or it is in ceiling, floor or emptiness. Localization helps to prioritize actions to be taken based on the first address response. The final question Is it possible to operate this asset or do I need something else? Based on the location and address, the answer of whether it is already operating or if it is required to expect some type of demand in the floor, or offer on the roof is part of the analytical and decision-making procedures that are necessary for a trading consistent. This step-by-step process, simple and effective, is carried out day by day, in our time frames and applied to every asset in our personal universe. Both our questions and answers are obtained in “black and white” which facilitates the correct decision making. The rest is to apply objective management measures to the trade and maintain the discipline to achieve goals, both procedural, as the most important, the goals of results.