Today’s article is good teaching , for all the beginner traders , and also a good revision for all the experience traders in the market about the price action trading.
This article will tell you about, what price action all about is , and its importance in terms of trading. It will help you to clear all your doubts related to price action.
What is Price Action Trading All About?
Price action is the steps taken by the market i.e the movement of the price in the market.It is the observation of raw price on the price chart without using the indicators or oscillators.
The steps taken by the market are studied with the help of price action charts which gives the clear picture about the markets past movements.
Those charts are the price action strategies and when , one who trades by studying those price action charts , is known as price action trader.
The formations of price action strategies are because of , repetition of the same behavior of the market periodically to some extent.
We humans have a similar kind of behavior with regards to money .i.e. we keep on repeating our behavior when money is involved due to which price action is formed.
So in the same way the movement of the market can be assumed that how it’s going to behave in future with the help of price action strategies.
Along with price action strategies , knowing about the core support, resistance level and a practical thinking one can judge the exact entry in the market to earn profit and become a profitable trader.
Price action trading is one which allows trading in any of the financial market at any time frames but the in the beginning one should give preference to higher time frames to understanding the price action charts.
Importance of price action trading.
Let me ask you, Did you directly start learning the lessons in your play group days? The answer is a big NO because you need to know the language for studying reading and understanding the lessons.
In the same way in the trading you need to know about price action in detail then only you can understand and analyze the price action charts.
Without knowing price action if you will try to analyze the charts then it will not at all make any kind of sense as you will not understand anything.
There may be many traders in the market , who may advice you to be dependent on the trading indicators and on the other software as they don’t know the truth about market.
Don’t get involved in such kind of activity , because price action is the only one which gives the overall view of the markets movement.
Don’t even get into misconceptions laid down by the people about the market which tells you that , you’ll earn more money in short period of time.
As there are no shortcuts to earn money , and if you will choose shortcuts you will definitely raise problems for yourself.
So even if price action takes time from you , To learn it is really advisable to trade with price action as it will surely give a slow and steady rise of profits in your accounts.
Methods to learn price action trading.
Try to be master in price action strategy one at a time , Being a beginner you should become a master in only one price action strategy at a time , which you feel easy to understand you can choose that one.
But don’t change your strategy again and again as many of the traders have that habit. It’s better to know about one thing in detail rather than knowing a little bit about everything or I would say those are nothing but JACK OF ALL AND MASTER OF NONE.
In the beginning trade for higher time frame, Initially it’s important to trade for longer time frame because you need to give your more time in understanding the price action trading strategies and developing your own trading plan.
Once you really understand the market it will avoid you from over trading and help to become a stress free trader.
Get your training from a successful trader to make a profit from the market , and become a successful trader without making more mistakes.
It’s better to learn from a successful price action trader , who can give you a proper guidance with regards to trading.
key point to remember while trading.
You need to understand that , waiting for the right time to trade in the market is the most important thing. For that you need to be patient , and not in a hurry to make money by getting involve in wrong trade setups which has more risk.
Trading is business where it checks your patience and if you can handle your patience in a correct direction you can become a successful trader.
It’s a necessity of all traders.
I would say that even if you are not trading with the price action strategies , it is important to know about the price action , as it will help to understand the market conditions without which , trade is not at all possible.
It’s just like one is driving a car without knowing how to drive. So at least a basic knowledge about price actions is necessary so if you want to know about it you can join my price action trading course.
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