Learning to read price is one of the most profitable skills you can develop.

Until recently it was a very labor intensive process to gather price data and test out ideas.

I remember when I got started, charts were delivered weekly – with enough space on each chart to update it by hand.

Indicators were virtually non-existent, as computers were not a household item.

Today the internet has has allowed anyone, anywhere, with a computer to have access to powerful tools. The key is learning how to use them.

One of the fastest ways to improve your trading ability is by using free resources right in front of you.

Here’s what to do:

Firstly, get yourself setup on a demo account. Any broker will do. Check out IBFX.com if you don’t have one already. They’re free and you can get setup in minutes.

Open it up, and take a look at a chart. I’d suggest looking at either the GBP/USD or EUR/USD. Any pair will do, so if you already have a favorite, then go with that.

If you’re brand spankin new to this head over to babypips.com to pick up a bit of basics about what the chart is showing you. Then come back to continue.

Now go to the timeframe you trade (or plan to trade). Don’t have one? Well try the hourly.

At the top of the chart, there is a little button with “H1″ on it, click that.

Now press the “Home” key on your keyboard. This will take you to the beginning of the chart.

Here’s what you’re going to do, move forward, bar by bar, you do this by clicking on “F12″ – found at the top of your keyboard.

What are you looking for?

Well the first few times you do this… don’t look for anything, just get your eyes used to how price moves.

Click to the next bar at your own pace.

Don’t go too fast or too slow.

Now what have you done?

You’ve compressed, typically a year’s worth of trading into only an hour or so of actual screen time.

Do you see the value in this?

Yesterday, while waiting at the dentist’s office, I read an interesting article.  It detailed how researchers found that amassing 10,000 hours of practice lead to mastery in just about any subject.

In his early high-school years, when he should have been in bed, a young Bill Gates would head off to the University of Washington where he and his friends racked up 1,575 hours of computer time on the mainframe computer.  That averaged out to 8 hours a day – 7 days a week.  By the time he dropped out of Harvard he’d already been programming practically non-stop for seven consecutive years. He was way past 10,00 hours.

Not into computers… well there was another excerpt about a band.  While most bands don’t perform 1,200 times in their entire careers, this group performed 1,200 times in a 4 year span.  By the time The Beatles broke out in 1964 they’d banked 10,000+ hours of gigs.

The article went on to highlight more and more cases, in a variety of different areas and how practice was a key ingredient to success.

This made me realize WHY this trading exercise is so powerful, and why it’s really a secret to why professional traders outperform the average.

Successful traders spend countless hours pouring over charts,  studying the market AND following the market in real-time.  Is it any wonder they get good?

But what’s really encouraging is that success is possible for anyone willing to put in the practice.

And that’s what this exercise is all about.  You don’t have to wait and watch 10,000 hours of price action in real-time – you can compress years of data into a few hours.

I highly recommend you do (and repeat) this exercise whenever you can.  

Hone your skills… trust me, this is a priceless skill!

Categories: Trading

*Disclaimer:It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options.