How to learn price action trading
Aug 22, 2019 at 9:16 am #2190shanewrightsParticipant
Everyone knows price action trading is one of the easiest ways to find great trades. But when it comes to real-life trading, people find it hard to trade the market by using the price action confirmation signal. Majority of the rookie traders relies on the indicators reading and execute low-quality trades. You need to understand the fact, trading is all about finding the high-quality trade setups in the higher time frame. Never try to trade the market based on emotions as it results in heavy loss.
By using the simple price action confirmation signal, you can easily find great trades and make a consistent profit. But how do we learn price action trading strategy? Though there are many techniques today we are going to highlight the four major steps to master the art of price action trading strategy.
Use of demo account
The demo account is one of the best tools which you can use to master the art of trading. No matter which trading strategy you use, you need to demo trade the market to develop your trading skills. Things might sound a little bit boring but there is no reason to risk your real money when you can master the art of trading in the demo account. Learn more about the different price action confirmation signal and see how the market reacts on different levels. Stop worrying about the low-quality trade setups. Test different candlestick pattern in the demo account and find out the best possible price action confirmation signals to trade the real market.
Taking help from the experts
The experienced traders can easily give you the perfect solution to master the art of trading. You might be new to this trading profession but this doesn’t mean you will trade with the low-end broker. Find the best introducing broker and use their trading environment to develop your trading skills. Find expert traders and seek help from them. Some of the experienced traders might charge small fees to teach you the perfect art of trading but it’s normal. By investing a small amount of money in trading education, you can easily boost your profit factors to a great extent.
Learn more about support and resistance level
You must have a clear idea about the crucial support and resistance level. Never think you can win big trades without doing the proper market analysis. Those who analyze the data in the lower time frame are bound to lose money since they trade the minor support and resistance level. Being a price action trader, you must learn to find the major support and resistance level in the higher time frame. Though the daily or weekly time frame analysis is extremely boring, still you need to stick to the higher time frame data. Forget about the low-quality trade setups and focus on simple trading technique. Use the most reliable candlestick pattern to execute high-quality trades at the key levels.
Managing the losing trades
As a price action trader, never think you can win all the trades. To make a consistent profit in the Forex market, you must have a clear knowledge of the technical parameters and risk management policy. Learning the details of technical analysis is easy but when it comes to risk management, things become worse. You have to understand the fact, losing is nothing but a part of this profession. If you fail to manage your risk exposure, it won’t take much time to blow up the trading account. Think twice before you execute the trade in the Forex market. Though you will be trading the market with the Japanese candlestick pattern still you need to focus on the basic details of investment business. Last but not least, try to be a conservative trader since it will save your trading capital.00Aug 23, 2019 at 12:01 am #2196FXGuruParticipant
There are many ways to learn but we can easily use Google for it. I work with FreshForex, and they have excellent educational setup to help one with things. I always find it easier and simpler through them but it is also about our dedication and determination that matters at the end of the day!00
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