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Stephen Hamilton
by on January 28, 2020
142 views

Over a period of time, the condition of the market changes. The volatility of the market fluctuates and sometimes you will notice that the market is quiet for a long time. At times you will find the market extremely volatile and this might create a perfect profit-taking opportunity. But securing profit regularly is not so easy. When you notice that you are losing many trades continuously then be sure that you are doing something wrong in your trade.

Before you place any trade have a look at the price chart and try to decide whether you should buy or sell. But remember the fact, no one can assure you that you will win all the trades. Always make a risk with a minimum percentage so that on the next trade if you win you can buckle up that loss.

 

Is price action is a system

Many new traders become confuse that price action is not a trading system. Price action is nothing but executing the trades at the support and resistance level using the different formations of the Japanese candlestick pattern. To become a professional price action trader in Hong Kong, you need to learn about the different formations of the Japanese candlestick pattern. It might be a tough process for the naïve investors since they don’t really know how to assess the patterns based on market psychology. For this reason, they often rely on other people's signals.

Don’t take all the price action signal blindly you see on the charts, trading can be tough for the naïve traders since they don’t have strong knowledge of the reliable candlestick patterns. Before you trade make sure you have a clear idea on the price charts. Stop using your real Forex trading account and open a demo account with elite brokers like Saxo. Try to execute the orders based on the candlestick pattern. Losing or winning should have zero impact on you. But you must learn things from your trading mistakes.

 

Price action always works

Many new traders think that the price action trading method will stop working but before saying they should know that price action strategy has been working since the 1700s and it is still working and always will. Price action works but that doesn’t mean every trade will win, indeed some successful traders will lose but successful traders use the proper risk-reward ratio so after losing they still make a lot of money.

The point is that price will always work without any stop as it is the natural way to trade. And the stops are usually placed based on the candlestick patterns. In the Forex market, the price volatility fluctuates many times but we can see the movement of the patterns so by that, we can learn from that movement to make a profit. The price action signals do not only find the potential stop loss for a trade, but it can also give you accurate data to trade the major levels.

 

The market will test you

If you make a big profit in the trade don’t assume you won’t lose any money. The market will always test you. Even the best traders also have losing trades but they don’t let that affect their mindset. If you stick to a plan and maintain your strategies you won’t have to worry about the results. Let the market move in its own way.  

 

Conclusion

Thus it is true that trading is an ultimate test for your fortitude. Price action strategy plays a vital role so always focus on the price chart before you place a trade. You can’t feel low if you lose in the trade as losing is also a part of trading.

Try to maintain a regular routine in the trade and keep your eyes on the movement of the trade, there is no fixed volatility for the trade market as it changes every now and then.

Posted in: Business
Topics: forex trading
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