Most common mistakes in price action trading strategy

[sandysr]

Price action trading strategy is considered to be the most powerful and reliable trading strategy in the world. If you look at the professional traders in the UK community then you will notice that most of them are trading the live assets by following the price action trading strategy. If you are relatively new in forex trading then it’s true that you will have a little bit difficulty in learning the art of price action signal in the market. But if you have strong determination and devotion in the market then you can easily execute high-quality trades by using the price action signals. However, most of the novice traders make some common mistakes in forex trading and in this article we will discuss the most common mistakes in price action trading strategy.

Trading the smaller time frame: Most of the novice traders in the forex market thinks that if they trade the smaller time frame in the market they will be able to execute high-quality trades in the market. But in reality, you are actually trading the low-quality setups in the smaller time frame and even the most of the false signals are generated in the smaller time frame. If you are not sure then use demo trading account and trade the higher time frame using price action confirmation single then you will notice that you winning edge has increased to great extent.

Ignoring the long term prevailing trend: There is a well-known proverb in the forex market that the trend is your friend. If you look at the professional traders in the forex market then you will see that most of them are using the price action confirmation signal in the market to trade in favor of the long-term prevailing trend in the market. But in order to secure high-quality trades in the market, you need to make sure that you trading the higher time frame in favor of the long-term prevailing trend. It’s true that if you trade the higher time frame in the market then you will have to wait for a long time for the perfect setup but always remember that in order to make a profit you need to focus on high-quality trades only. If you think that you are not sure how to trade then use your demo trading account (https://www.home.saxo/en-gb/platforms) to learn the art of trading.

Assess your trading strategy: When you learn the basic of the price action trading strategy make sure that you assess your trading performance in the demo trading account. If you see that you are winning more than 60 percent of the time then you can start trading with the real money. But before you start trading with real money also make sure that you know how to manage the risk exposure level in trading. Always make sure that you winners are bigger than you losers. As a professional trader, you will always have some losing trades and you need to learn to embrace them. If you look at the professional traders then you will notice that most of them have many consecutive losses in the market but all of their loss are managed loss.

[Pill Adams]

In simple terms, price action is a trading technique that allows a trader to read the market and make subjective trading decisions based on the recent and actual price movements, rather than relying solely on technical indicators. I like to trade with price action strategy. Though I like price action strategy I have chosen Evolve Markets (https://evolve.markets/)is based on bitcoin helpful for all types of trading.

[Sininfinity]

No doubt price action strategies are king. Most experienced traders use price action and does not rely on any additional influencers. But not everyone can trade with price action strategy. So they may need extra help. The goal is to make profit and if a trader can do that by any means then it is a good way.

[Andy Jones]

A trader can think of making or generating income in secured manner when he can make proper use of trading strategy. Though today various trading strategies are available, a trader must think of picking up a trading strategy which will facilitate him effective utilization of his funds in the most positive manner. Price action trading strategy is now being served as one of the most potential trading strategies in the present day.

[Jonathan Grant]

Price action trading is a type of technical analysis without any technical indicators. Price action analysis is based upon the principle that price reflects everything and along these lines price is thought to be the, and just pointer that traders require. In price action trading, price is of most extreme significance to the trader/examiner. It is an investigation of price in connection to the past price (or price history). In this manner, price action is only an investigation of how price changes.

[Randy Martin]

Emotion can cause great problem in trading. Because taking decision emotionally can lead the trade into the loss. Technical decision is far better than emotional decision. I don't give importance to emotion while I trade. My broker TP Global FX is also help me to take decision technically. It prevents me from taking decision emotionally. I like them because of their low spreads, dynamic leverage and easy decision making tools.

[FXOpentrading]

There are so many mistakes could happen in forex trading, however we can use the mistake to enhaced trading strategy to be better. It is good to write down the mistake in notepad and learn from mistakes to avoid the same mistake repeated again. Mistakes sometimes gives valuable lesson in the forex trading.

[Aaronbad]

Common mistakes in price action trading include over-trading, ignoring key support and resistance levels, chasing price movements, not using proper risk management, and lacking patience for valid setups. Traders should avoid these pitfalls by sticking to their strategy and maintaining discipline. LQDFX broker never puts any restriction on using any type of strategy and their high leverage helps traders make choices of high lot size.

[Fin_Trader]

When trading using any strategy, we need to remember to control our emotions. We should not rush, we should not try to quickly compensate for the loss on an unsuccessful transaction. Also, excitement and euphoria greatly interfere with trading and contribute to increasing losses.