Price action traders are always one step ahead in the Forex market. They never trade the market with emotions or gut feelings. Professional traders always trade the market with proper discipline. They never break the rules at trading since they know the importance of having a risk management policy. Some retail traders often become confused after learning the price action trading strategy. They don’t know how to place the perfect trades with managed risk.
This article is dedicated to the professional price action traders who want to find the perfect trades. Read this article very carefully so that you don’t have to lose a big sum of money at the initial stage.
Trade with the daily time frame
Being a price action trader, you need to trade the market in the daily time frame. Trading in the lower time frame is one of the key reasons why the majority of the retail traders are losing money. If you look at the big investors in the Forex market, it won’t take much time to understand why they can trade with the major trend. Instead of relying on quick profits, you should consider trading as a long term investment business. Once you get better at trading, you will never trade the lower time frame.
Learn about the reliable candlestick pattern
You need to learn about the reliable candlestick pattern to become the best currency trader. Those who are trading the market for a long period know the importance of a reliable candlestick pattern. You don’t have to learn too many price action signals to earn huge profits. Just by using the basic candlestick many traders at Saxo capital markets Singapore is making tons of money. During the learning stage, you need to use the demo trading account so that you don’t have to lose a big portion of your investment. If you are good at trading, be sure to switch to the demo account frequently so that you can fine-tune your trading strategy.
Learn from your mistakes
To become a professional price action trader, you need to learn from your mistakes regularly. Learning from your trading mistakes is one of the most effective ways to learn new things about this market. Things might be hard and you might not be able to learn from the losing orders at the initial stage. But once you start to understand this market, you can slowly develop your skills and trade this market like a pro trader. Forget about big profits and try to learn from your trading mistakes. Once you start learning from the mistakes, you will feel the change in your trading performance.
Trade with discipline
You need to be a disciplined trader. Unless you have the guts to trade with strict rules, you should never try to become a professional trader. Most of the time, retail traders are losing money because they don’t have the skills to find great trades. Things might be hard at the initial stage but if you look at the long term goals, it won’t take much time to learn from the mistakes. Control your emotions and look at the bigger picture of the market. Once you understand the importance of discipline, there is no way you are going to blow up your trading account.
Deal with the major news
Being a price action trader, you need to learn to deal with the major news. Dealing with the major news is a very tough task since it requires analysis of the fundamental data. But with some hard work, you can learn the details of fundamental analysis. Remember, you can’t make a profit based on technical data only. So, learn about the price action signals and focus on the major news to execute quality trades.