Many traders have become so fixated on indicators that they fail to realize that you can actually trade price. Price leads indicators. One problem with indicators is that by the time it registers a trade for you, the trade is usually well under way. Trading pure price is almost a sure way to get in the start of the move. Some may say “hey, you are picking tops and bottoms. Fools game.” Really? The lowest risk and highest reward trades are at those specific spots. In fact, once you have found key areas to trade around, you will still lose but your losses will be so small compared to the wins.
This video shows just that. Trading a daily chart of the AUDJPY, this trade took little heat and by this afternoon was up over 140 pips. Painfree. Yes, it picked a top.
Edit: Trade has been scaled out to give a risk free trade without moving stop
Not to say trading with indicators is a bad thing. Given that the majority of traders fail and we all have access to the same old lessons on using indicators, something is wrong. Maybe what we have all been told is dead wrong. If you are still struggling to make a go at trading, make sure you stop by the webinar for the Seven Summits Trader. No hype but this strategy has done very well across all types of markets. The webinar is free and there are two times that you can attend.
DETAILS:
Thursday Feb 24
12 noon & 8 p.m. est
http://www.atradingplan.com/12webinarsst
