Learning about the price action trading method is a very tough task. Everyone wants to become a professional price action trader but very few manage to master the art of the candlestick pattern trading technique.
Most people start their trading career with a real account. They consider the demo account as a waste of time and money. If you do so, you are going to have major trouble in the trading profession. Moreover, you will never learn what it takes to become a professional price action trading trader.
In this article, we will share some amazing tips which will give you a clear insight into the price action trading strategy. And if you follow the tips mentioned in this article, you should be able to become a professional price action trader in less than six months.
Get a professional demo account
You can’t learn things in a real trading account. If you try to test different kinds of trading techniques in the real trading account, you will mess things up and blow up the trading account within a short time. That’s why professional traders love to test things in the demo trading account. Once you set up the demo trading account, you will gain access to a professional trading environment where you can do things without risking any real money. This will boost your trading performance and let you learn price action trading skills.
Learn the basic candlestick pattern
At the initial stage, you should be learning the basic candlestick pattern. If you go with the complex candlestick patterns, chances are high you will not understand anything about the price action trading strategy. You may start learning about the functions of the pin bar as it will make you more confident and let you trade this market with strong goals. Never expect that the learning process is going to be an easy step. It will take some time before you truly understand the functions of the candlestick pattern. Once you learn this technique, trade the market with the smart brokers like Saxo and change your life.
Focus on the complex candlestick patterns
You need to focus on the complex candlestick patterns from the start. Without focusing on the complex candlestick pattern, you will keep on messing things up. Never expect that you know every bit of details about this market. Take your time and learn to evaluate the critical risk factor in a systematic way. Once you start following this technique, knowing about the simple candlestick pattern is going to be an easy task. Thus you will learn better without getting frustrated.
Support and resistance level
You must have strong knowledge about the support and resistance level. Without having a decent understanding of the support and resistance level, you will mess things up. That’s why professional traders always encourage novice traders to test different trading zones in the demo trading environment. As you become good at analyzing the major support and resistance level, you will feel much more comfortable with your actions. Thus you will become an experienced trader within a short time. Most importantly, you will know about the exact places where you need to look for reliable candlestick patterns.
Risk management technique
You must learn about the risk management process or else it is going to be a very tough task to manage your risk profile at trading. People always think they know everything about the market and with the help of the price action trading strategy, they can make a big profit without having any hassle. But this is not all true. To become good at price action trading strategy, you must learn to trade with low risk.
If you depend on high-risk factors, you will be always under heavy stress. So, after losing a few trades, you will become frustrated and break the most common rules for trading. Thus you will no longer stick to the trading system. On the contrary, if you rely on a 1% risk factor, you will never take aggressive steps.