Dwayne Buzzell Blog | Three most common mistake sin price action trading | Talkmarkets

Dwayne Buzzell

Forex Trader
Member's Links: Forex Trader

An economist, Forex trader and Forex writer, I have a keen eye for spotting international trading trends, particularly since shadowing my mother’s work over the past 20 years with one of the largest fashion groups.

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Three most common mistake sin price action trading

Date: Thursday, July 27, 2017 5:19 AM EDT

There are many ways of trading the financial instrument in the world trading strategy and technique tends to vary from traders to traders. Most of the novice traders tend to trade with an indicator based trading system which is absolutely wrong. As a professional currency trader, you should focus on support and resistance level trading. If you relatively new to this industry then try to develop a solid basis in this industry.at your initial stage learning all the details of this market will be a little bit difficult for you. And for this very reason, the expert Aussie traders always suggest the new traders start slow. If you want to grip all the highs in the market then you will learn nothing. Try to follow a simple strategy to make money and do not use the too much complex trading system. When it comes to simple trading system price action trading is the most used trading strategy. Though the system is extremely profitable but some common mistakes are made by the novice traders. Today we will discuss the three most common mistakes in price action trading that every trader make.

Trading the lower time frame

The forex market is vast market and traders can trade in the much different time frame. The new traders in the financial industry tend to trade the lower time frame using price action signal since they get lots of trading signals. But when you execute all the trading signals you are actually losing your quality. Quality always comes first in the world finance. Instead of placing hundreds of trades trying to find a high-quality trading signal in the higher time frame. If you do your technical analysis in the higher time frame then chances are very high that you will make a profit from that trade. Instead of aggressively trading the price action signal wait for the confirmation candlestick. Once all the parameters are full filed execute your trade in favor of the long-term trend.

Taking high risk

The price action trading system is profitable that most traders start taking high risk in their online trading account. But no can assure you that you will have winning trades followed by a winner or loser. To be precise trading is all about probability. If you want to succeed in this industry then you need to trade the price action signal with minimized risk. You might find the best quality trade set-up in favor of the long-term trend but yet you should never risk more than 2 percent of your account capital. Always focus on proper money managed. Losing is just inevitable in trading so if you don’t plan your trade with proper money management you will never succeed.

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