This method study, implies refusal to use technical indicators.
Exchange trading participants work with naked price chart. Its base is 1-th postulate of technical study (the cost takes everything into account). BUT means, schedule already contains everything necessary for trade.
Almost all famous and no extremely participants in exchange trading up and down investigated this strategy, modernizing and adding it. but special value is price course Action Lance Begsa.
It contains results perennial tests author with trading on the PA system, which are filed as certain advice and advice. Exploring these materials, even a beginner participants in exchange trading will be able measuredly come out on top, working with naked schedule.
Exchange trading participants Lance Begs
Regardless on essential achievements in trade, Lance Begs (Lance Beggs) does not conduct public activities. The participants in exchange trading 80-year of birth Right away devotes full time to trading, and huge spends part of the time in individual a tropical paradise in north Queensland.
IN past Lance Begs - military pilot. Now — successful participants in exchange trading, skolotivš?? fortune in currency trading, indices and oil futures.
According to Lance himself, specifically military experience helped him to become successful. BUT more precisely, thin cognition human psychology, which he acquired during his service.
Similar worldwide popular meters, how, for example, Neil Fuller, assure that, that PA is a strategy for long timeframes. And the shorter the timeframe, darkness more "noise" and infidels signals, and means, more horrible the outcome. The author of this course, probably, nothing of this did not suspect, and that's why successfully used PA on the M1 and M5 charts.
Course by Price Action in Begs's interpretation contains special orders for tracking positions. If other courses, books And management PA pays attention to finding entry points, here contained detailed adviсe for escort. This principled part tactics, because trade, as we remember, conducted on small timeframes.
Traps
The main part of Begs' trading approach is traps against the trend.. Almost all participants in exchange trading not use trade in traps, preferring to collect the wrong huge, but measured profit from an active trend. but course author thinks, what this one trading doctrine deserves more attention.
The difficulty of trading traps:
Home difficulty — interpretation characteristics. Amateur is waiting good luck breakdown and is waiting proof of new trend - for most experienced trader, failed breakdown by itself for myself is a trading signal.
How like may be? Begs comments on this subsequent way:
In accordance with ordinary rules of technical study, breakdown major levels is possible sign of an imminent trend reversal. This it's clear to all. Market on eighty percent consists of exchange trading participants, who trade on the breakdown of the price "envelope". In fact, a breakdown is only mediated sign, which is not constantly confirmed. Easier speaking, breakdowns not infrequently are wrong.
General ideas they say to participants of exchange trading, what are the breakdowns necessary accept, as a reversal signal. That's why one open a deal very early and lose facilities. BUT 2-s put very late, and take away only "Leftovers". Lance Begs teaches to recognize unfaithful U-turns, so that apply them in their favor. Incorrect reversal - this is ordinary trap.
What are the benefits of trading with traps?? The essence ordinary: catching a breakout peak against powerful And measured market trend, And predicting its failure, participants in exchange trading opens a deal not by reversal, and on old trend. If his prediction turns out to be correct, market soon will come to balance. The cost will follow a renewed trend, bringing exchange trading participant huge profit. The same, who expect, until the ripples settle, lose up seventy percent Togo, what can you take from the trap.
The nature of the market is not about price, this is something else.
-One of the reasons, by which traders cannot succeed is, what they don't understand, what game are they playing. They don't understand the nature of the market. They don't understand the nature of trading.
-To understand the real nature of the market, we will need to go through several stages. We need to start over, what is the price and why does it move? What makes the price move? This will lead us to a new understanding of the nature of the market.
— Price is a decision 2 traders and selling or buying.
Price movement is the result of an imbalance between demand and
offer. This imbalance is created by the desire of the trader to urgently open a trade..
— Price does not reflect fundamentals, she shows the mood of the crowd, who make their predictions based on analysis and specific decisions.
Price behavior is based on psychology. This is more of an emotional sphere., than mathematical, therefore, price behavior cannot be predicted using mathematics.
–Simple setups don't work in the market, they cannot adapt to the unclear and uncertain nature of price behavior. Fixed rules don't work. Any model, e.g. head and shoulders, will not work, if she points down, and people want to buy.
The market is traders, decision makers. The market is not a price movement.
- The problem is, that traders only focus on price. Price movement is a consequence. These traders just follow the investigation, hoping that the movement will continue and they will get a profit.
- Look at the price movement through a different lens - cause and effect.
Price movement and indicator signals are a consequence. Most traders only focus on this. This is all, what do they see and that's it, what do they trade.
To truly understand the market, we must focus on the reason.
The most efficient analysis, this is not a price analysis, and analysis of traders' decisions.
- You should buy there, where the rest will also buy and after you, because this will create bullish pressure and the price will go higher, which will allow you to make a profit.
- Sell there, where do you know, that others will also sell after you, because this will create bearish pressure and the price will go lower, and you will make a profit.
- Simply put, you need to buy there, where others will buy after you, and sell there, where others will sell after you. You can do it, if you concentrate on zones, where traders make decisions. What are they thinking? Where will they make decisions?
Find zones, where traders will make decisions, and you can earn.
–Drawing zones, not lines. The most important, not afraid of subjectivity, and don't get hung up on precision. You will see later, that these are rather areas of interest, than a zone, from which the price will surely roll back, sometimes we will trade a pullback, sometimes breakdown.
When can we define a zone, where most market participants will experience stress, we will be able to determine the area of possible market entry.
– Market transactions take place in real time, the concept of time slots only exists to, so that we can see past and present price behavior. The higher the time interval, the better the overall picture of the market is visible. The lower the time interval, the more detailed trader can consider price action.
The First Postulate: Price Reflects Everything.
It means, that all the information about the market, including fundamental factors, traders' psychology and other factors, is reflected in the price. That's why, to be a successful trader, It is necessary to understand, How the price moves and how to interpret its movements.
The second postulate: trend – Your friend.
trend – This is the direction of the price movement. Begs claims, what's the trend – This is the most important factor, Things to Consider When Trading. It recommends trading in the direction of the trend, as it gives you a better chance of success.
The Third Postulate: Don't try to beat the market.
Begs counts, that the market is always stronger, than any trader. Therefore, he recommends not to try to beat the market and follow its movement.
The Fourth Postulate: Risk Only Those, what you can afford to lose.
Begs counts, that the risk – It's an integral part of trading. However, he recommends always risking only that, What You Can Afford to Lose. This will help you avoid large losses in case of a bad trade.
The Fifth Postulate: Stay Disciplined.
Discipline – This is the key to success in trading. Begs recommends sticking to your trading system and not giving in to emotions.
These postulates are the basis of Lance Begs' approach to price trading. They're simple, But following them can help you become a more successful trader.
Let's take a closer look at each of the postulates:
The First Postulate: Price Reflects Everything.
This postulate means, what's the price – It is a reflection of supply and demand in the market. Supply and demand, in its turn, depend on a variety of factors, including fundamental factors, traders' psychology and other factors.
In this way, Price Reflects All, what's going on in the market. It means, what, Studying the price, You can get information about, what's going on in the market, and make predictions about its future movement.
The second postulate: trend – Your friend.
trend – This is the direction of the price movement. It can be ascending, Descending or Lateral.
Begs claims, what's the trend – This is the most important factor, Things to Consider When Trading. It recommends trading in the direction of the trend, as it gives you a better chance of success.
Trading against the trend can be profitable, But it's riskier. This is related to, that trend movements are stronger, than corrective movements.
The Third Postulate: Don't try to beat the market.
Begs counts, that the market is always stronger, than any trader. Therefore, he recommends not to try to beat the market and follow its movement.
An attempt to beat the market often leads to losses. This is related to, that the market can move in unpredictable ways.
The Fourth Postulate: Risk Only Those, what you can afford to lose.
Risk – It's an integral part of trading. However, it is important to always risk only what, What You Can Afford to Lose. This will help you avoid large losses in case of a bad trade.
The size of your stop loss should be appropriate for your risk. The More You Risk, the smaller your stop loss should be.
The Fifth Postulate: Stay Disciplined.
Discipline – This is the key to success in trading. Begs recommends sticking to your trading system and not giving in to emotions.
Emotions can lead to mistakes in trading. Therefore, it is important to stay calm and make decisions, Logic-based, Not on emotions.
Following these postulates, You will be able to increase your chances of success in price trading.
