December 15, 2017 at 11:48 am #152
There are many things that you need to learn to become a successful trader. You might have a huge amount of money but this doesn’t guarantee that you will have tons of money just by trading the live asset. In order to become a successful trader, you have to work very hard. The first part of something new is very challenging. Majority of the traders start trading with real money and this is the number one mistake that any novice trader can make. Before you even think about investing real money you need to start demo trading the market. In fact, the most experienced traders in Australia often use the demo account to develop their trading skills. Today we will learn more about price action trading strategy and find out the exact reason behind its huge popularity.
Clean trading chart
The best thing that you will have as a price action trader is a clean chart. Most of the retail traders use indicators to trade the market. But indicators should be your helping tools and you should never take any trading decision based on their readings. However, when you start trading with the price action trading strategy you won’t have to deal with the indicators reading. Price action trading is based on the raw price movements of the market. The expert trader uses the reliable formation of the candlestick pattern to trade the key support and resistance level. But before you start trading the live assets you need to make sure that you know the perfect way to draw the key levels in this market.
Extreme level of reliability
Majority of the successful traders in the Forex market use price action trading system. The system is extremely simple and reliable. Though the beginning part of your trading career as a price action trader will be a little bit challenging once you learn about the formation of the Japanese candlestick pattern everything will become easier. Forex trading is an art and you need to careful trade this market. You will have to face some losing trades but this doesn’t mean that you are done in this profession. Learn about the trade management technique and it will help you to make money even after having more losing trades. When you do the market analysis, it’s your duty to find the long-term existing trend. Some retail traders often try to act smart by trading against the market trend. But you need to understand that counter trading is one of the easiest ways to lose your investment.
Tight stop loss and take profit level
As a price action trader, you will always find a precise entry point for your trade execution. But in order to find high-quality trading signals, you will have to use the higher time frame. If possible use the daily or weekly time frame to trade the market. However, some traders often use the 4-hour time frame to use a tight stop loss in price action trading. But if you want to do so then you need to learn about multiple time frame analysis. Multiple time frame analysis is nothing but the study of the different time frame charts at the same time. But when you do so you need to give more importance to the higher time frame trading signals.
Making your life easy based on the trading profession is really very challenging. But there are many traders out there in the world making millions of dollar from this market. If you want to become one of them you need to start learning from the scratch. Never listens to other people trading signal rather use your own logic to place your trade. Invest your money in paid trading education since it is one of the easiest ways to learn the art of trading. Make sure that you trade this market with low-risk exposure and try to use the reliable candlestick pattern to trade the key levels of this market.
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