The biggest thing that new traders have to overcome is their fear of trading. A lot of the times signals will appear and because of fear the trade will not be made. What needs to be done to correct this fear is having a solid understanding of the planned trade and confidence in the setup. Learning how to trade based on price action can give you this new found confidence. Price action is the only way to trade and when you are trading based on the movement of price then you are officially trading the market.
demo trade for a few months. then live trade with a micro account as long as you can afford to.
best way to learn.
Exactly. Price action is the best information. And the closer you trade to price action, the better your probability will become with a good system.
Hi, I like the idea of this Price Action thing, I’m quite new to Forex but all those indicators seem to be just a jumble of contraditcoins to me.
So I want to try and get my head around this price action thing, is it how the price is moving as you watch it on the screen or is it looking at bigger and smaller candles?
Price actions is about identifying candlesticks patterns on important areas like support and resistance, daily low/high and weekly low/high. For a start maybe just start with one or two candlestick patterns like hammer, or Bearish/Bullish outside bars. Try to identify these patterns on important areas and see how price reacts.
THANKS! Until now, I was trading what I smelled but that wasn’t working out so hot. Now I know which sense to use!
Thats funny! lol…but on a serious note “Trade what you see” mean to put all your indicators away and trade what price is telling you. Many traders will look at a chart and already predetermine the direction they are going to trade before they actually take a look at what price is suggesting. So in all seriousness remember that the market gives us traders clues we just have to be able to identify them and be able to take action. Adios