There are a few things you need to know about the currency trading business. Naïve traders are always trying to learn new things without knowing the key factors of trading. Making a regular profit in the Forex market is a very daunting task. If you want to safeguard your capital, you must learn to trade this market with discipline. Breaking the rules and trying to earn a decent profit with gut feelings is an immature act. The experts of Singapore often recommend that new traders learn price action strategy.
The price action strategy gives you the perfect opportunity to make a big profit. By using this technique, you can easily earn a huge profit without losing too much money. Let’s learn 4 amazing techniques by which you can learn the art of the price action trading strategy.
Demo trade the market
As a new investor, you should never try to trade the market with real money. Trading with real money is like dealing with the fire. If you make any mistakes, you can hurt yourself badly. Explore a demo account from Saxo and start learning to trade the candlestick pattern. No matter which trading strategy you chose, you should never try to trade with your real money. Open a demo account so that you can test different kinds of trading strategies. Try to find the most reliable candlestick pattern which will help you to trade the critical levels.
Trade the major levels only
The professional price action traders in the fx trading industry always trade the major levels. If you execute a trade at the minor support and resistance level with the help of the price action confirmation signals, there is a little chance that you will be able to earn money. Most of the time, naïve traders don’t have the skills to find the potential support and resistance level. To find the critical levels in the market, you need to focus on the key swings. Connect three major swings low in the market to find your desired support zone. You need to connect three key swings high to spot the critical resistance. Try to trade those critical levels using the price action signals and only then will you be able to make a profit.
Stop trading with high risk
After learning the price action trading strategy, the new traders often become restless and they start executing the trades with high risk. They think it is the only way to earn a huge profit from this market. Being a naïve trader, you need to think about the conservative approach at trading. Instead of relying on a high leverage trading account, you need to trade with low leverage. Leverage trading might be the most effective way to become rich but it takes time to master the art of a high-risk trading strategy. Unless you have at least three years of trading experience, you should never try to trade this market with high risk.
Learn to analyze the major news
The professional price action traders always analyze the major news because it allows them to learn about the potential price reversal zone. Instead of thinking about a super complicated trading method, you need to learn about the high impact news. Once you start understanding the importance of news, you will never trade this market based on the technical data. Technical analysis might the most efficient way to find great trades but still, you should think about the major news. Learn to play it safe so that you can make a decent profit at any market condition. Try to relate the formation of the candlestick pattern to the impact of major news. Once you find the correlation between news trading and the price action trading system, you don’t have to lose too much money in each trade. Learn to play it safe and trade this market with discipline.