I was a price action only trader at the beginning of my trading journey.
And looking back, I think that’s one of the main reasons I survived around eight nine years in trading.
If I had not started as a price action only trader, I don’t think I would have even made a profit from trading in total.
I mean, I have adapted to the market multiple times over the years.
Multiple times, even since I started sharing live setups with Patreon supporters.
Adapting to the market is one of the main things that kept me alive in trading.
But the only reason I can adapt to the new markets is because I spent thousands and thousands of hours analyzing and trading price action only.
So, in this video, I want to share a few reasons why I think you might have a much higher probability of becoming a profitable trader if you start as a price action only trader first.
Don’t get me wrong, before becoming a price action only trader, there was a phase where I tried everything, including almost all indicators.
And even now, I do use indicators because I tested them and found out which ones actually work.
But when I didn’t believe indicators worked, I was trading price action.
And the funny thing is, these clean naked charts actually showed me more information about what the price was doing than any indicator did.
To give you a comparison of what I mean, imagine that we are all sitting in the passenger seat of a car.
Let’s say a stranger is driving a car.
The numbers on the car’s display that show speed and other things are the indicators.
They show what action the driver is taking.
In other words, the driver is like the price or the institutional traders that move the market.
The person sitting in the back seat is the insider trader.
You can ignore them. Because we retail traders in the passenger seat have pretty much no control over the market.
Now, when we make decisions by looking only at the indicators, especially when we don’t know how to read price action, we have no idea what the driver is doing.
He could be sleeping, on his phone, eating, drunk driving, ignoring traffic lights, etc.
Since we are only looking at the indicator screen, everything will seem normal to us, even though the driver is not.
But when we look at the driver’s actions directly, we can see when he starts sleeping or drinking, or doing anything abnormal.
When we detect something abnormal, we can adapt to the new market conditions.
Like, if he starts speeding, put on the seat belt, in other words, reduce the risk in the market.
If he looks drunk, well, get out of the car.
Why risk it when we can clearly see he has a higher probability of crashing the car?
In other words, don’t take the trade in the first place when you can see the market is not worth trading.
That’s what I saw when I started trading price action only.
I could read when the market was good for trading more and when to avoid taking risks.
Most indicators always lag.
In other words, they show the information late, when the driver has already crashed the car.
Learning to read price action even helped me switch the car completely, like changing how and what I trade. If the forex market is not looking good, I will trade stocks. If the smaller timeframe is not looking good, I will switch to the higher timeframes, and so on.
My understanding of indicators also went up after I had gained enough experience with price action.
Like, I saw when to use indicators and when not to.
I don’t think I would have survived for around eight nine years in trading if I had never learned to read the price action directly.
So, yes, I do think you will have a much higher probability of becoming profitable if you start with price action only first. That’s all!