Saturday December 31, 2016 - 14:38:14 GMT
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How to become a successful trader by using price action strategy
Trading can be extremely difficult if you don’t know how to trade the financial market properly. Even the most advanced traders in the forex market often have bad times in trading the financial assets in the forex market. If you truly want to become a professional trader you need to have strong determination for learning .Most of the novice traders fail in this industry and leave the forex market within a year or two. So it’s your choice whether you will become a professional trader or leave the forex market after losing a certain portion of your hard earned money.
If you still committed in forex trading then you are most welcome. In this article, we will guide you how to become a professional forex trader in the financial world. There are a number of different ways of trading the financial instrument. Most of the rookie trader tends to rely on indicators but we will highly discourage you to do so. Since you are going to become a full-time trader you will tell you how to achieve your goal by mastering the art of price action trading strategy.
Price action: Price action trading strategy is considered to be a most advanced trading strategy in the world. Those who are trading the financial instrument for a long period of time use the price action trading strategy to execute their order in the market. The theory behind the price action trading strategy lies behind the in-depth knowledge of raw price data. As a professional price action trader, you will be using the raw price data in the market to execute high probability trades.
Learn how to draw support and resistance level: In order to master the art of price action trading strategy, you must know how to draw the support and resistance level in the market. Support and resistance levels are they key levels in the market at which price reverses its direction. If you don’t know how to draw the important support and resistance level in the market then you will not be able to master the art of price action trading strategy. Make sure you have at least two connecting points when drawing the important support and resistance level in the market. By the word connecting points we are refereeing the highs or lows of the market.
Learn different price action signal: Price action trading strategy is based on the formation of different candlestick pattern. Each candlestick in the chart represents a unique signal to the traders. As a professional price action trader, you must go through all the price action confirmation candlestick pattern. Once you go through all of them chose the highly reliable candlestick pattern to trade the key support and resistance level in the market.
Trade with the trend: You must have heard the proverb that trend is your friend. In the eyes of trained professional trading along with the long term prevailing trend is one the key method to become a successful trader. So when you execute any order in the market make sure you are trading in favor of the long-term prevailing trend. Never try to pick the top and bottom of the currency pair unless you are extremely skilled at this.
Chose higher time: There are many traders who often fails to achieve success in the financial industry due to their lack of knowledge and trading discipline. As a professional price action trader, you must know that the best trading results can be found when trades are executed in the higher time frame. Never use the price action confirmation signal from the lower time frame since they generate false signal very often. Expert uses the daily and 5-hour chart to trade the different price action confirmation signal formed at different financial assets.
Execute your trade with proper risk reward ratio: On of the key ingredient to becoming a successful trader in the financial industry is to follow the perfect money management. As a professional price action trader, you must execute your trade with proper risk management factors. If you find highly reliable price action confirmation signal on the daily chart but if the risk reward ratio is poor never execute that trade in the market. Always remember that proper money management is the key ingredient to surviving the forex market.
Let your winner run: One of the most common forex mistakes that every price action trader makes is that they cut their winners too early in the forex market. But as professional price action trader, you should not deviate from your trading principle. Make sure that you let your winner run in the market for a long time and allow it to hit your potential take profit levels in the market. If you don’t do so you will never become a professional price action trader.
Summary: Trading can be done with a great level of confidence if you truly know how to trade the live currency rates with price action trading strategy. But in order to master the art of price action trading strategy make sure that you develop a strong trading discipline. Never execute any trade in the market based on your emotions. If you do so then you will lose money in the forex market. Professional price action traders always use proper risk management factors before they execute any trade in the market. They always chose the higher time frame and trade in favor of the long-term prevailing trend. Losing is just a part of trading .SO when you have consecutive losses in the market don’t get emotional rather take a break and start your next trading day with a fresh mentality.
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