Forex market is extremely volatile in nature. If you make a small mistake you have to pay heavily. Many novice traders have blown their trading account due to poor risk management. Becoming a successful trader in the online trading industry is a very big challenge. You have to develop a simple trading system which will help you to become successful at currency trading profession. Price action trading strategy is often considered to be the best way to trade the Forex market. But mastering the art of price action trading system is not so easy. The novice traders often say it’s impossible to learn all the reliable formations of the Japanese candlestick. Though it’s true to a certain extent but by following some very few simple rules, you can easily make a huge profit from this market. Let’s learn about the key steps to become a professional price action trader.
Stop using the indicators
All novice traders are very fascinated with the indicators and bots. But these are not your prime trading tools. You need to trade in a clean chart to become a profitable price action trader. The new traders mess up their trading charts with different kinds of indicators. They want to use different kinds of indicators reading to find the best trades in the market. Start learning about the different formations of the Japanese candlestick pattern. Stop thinking about the profit factors of the market. First of all your main focus should be one trading education.
Learn the basic candlestick pattern
Though there are different kinds of candlestick pattern in forex market yet it’s very easy to understand all of them. Focus on the basic candlestick pattern formation. Learn the phycology behind the formations of each candlestick. Once you understand the psychological reason behind the different formations of these Japanese candlestick everything will become extremely easy for you. You might forget about the basic patterns but this is absolutely normal. Make sure you read books and articles on the price action trading system so that you get a clear idea about this system.
Use the demo trading account
Demo trading accounts are often considered as the most important platform for the novice traders. It allows them to trade the market for the virtual dollar. Being a new trader you can try price action trading strategy in a demo environment where you will never lose any real money. This is just like your practice field. Demo trade the market for at least six months so that you develop a strong basic on price action trading strategy. Though this system is extremely profitable this doesn’t mean you will win all trades. Losing is inevitable and you have to prepare yourself for the losing trades.
Learn from your mistakes
Mistakes are always appreciated as long as you learn from it. Being a new trader, it’s very obvious you will make tons of mistake. But you don’t have to worry about your losing trades. Trade the market in the demo trading account. Maintain a trading journal so that you can learn from your trading mistake. During the weekend, study your past trade and try to find your mistakes. This is one of the best ways to improve yourself as a professional price action trader. Assessing your past trade is a little bit boring but this will eventually fine tune your price action trading strategy.
Learn trade management
We all know losing is just a part of this profession. Never expect to win all trades by using the price action trading strategy. Start trading the market with managed risk. If you lose few trades, you should never become frustrated. No matter what happens you should never risk more than 1% of your account capital. Saving your investment is the hardest part of forex trading profession. Once you learn the proper way of to manage your losing trades, no one can stop you to become a successful trader.