Most of you have heard the term, "Pure Price Action" many times and probably believe it to be a great method of trading. First let me clarify that there is no argument here. We trade "Pure Price Action" everyday, however we take it many steps further. For you to truly understand price action you should understand that it is nothing more than a painted picture of many things. Trading psychology and Supply and Demand are the most important things within price action. If we ask ourselves why price moves in any given direction there is alway one answer..... because of the equilibrium of Supply and Demand. If the equilibrium is off, supply or demand will create balance once again which causes price action candles, bars or other chart types to display a trend. If the equilibrium is in balance then we will show sideways movement.
Every candle, bar etc. represents thousands of people making a decision on the value of a paticular instrument. Learning how to properly analyze this psycholgy is key. We then have the ability to use pre-defined trading strategies to capitalize on the markets.
CFTC RULE 4.41 HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. All Software provided or purchased is strictly for educational purposes only. Any presentation (live or recorded) is for educational purposes only and the opinions expressed are those of the presenter only. Testimonials may not be representative of the experience of other clients or customers and is not a guarantee of future performance or success.
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