price action is key to
a successful trading career.
Read books on price action to learn more.
Do you just punch orders hearing news about a particular stock
or sector or do you really care about your capital and take
baby steps with knowledge and power of control in your hand.
With price action learning, you can be really strong in
fundamental base. Many ask this question, do you trade
noises or do you trade prices? Are you driven by the volatile
spike plays or there is a solid basis behind your buy, sell trades.
There are ways in which a market participant plays his cards.
If you have just started and don’t know, where to begin.
Ask yourself the importance of making money in your life.
If it is really that unimportant, the stock market can be a
good place to get it from. Pay yourself to get rich and
get retired earlier, but do not start gambling. Learn the game
and participate and the best thing is to learn the skill of price
action trading.
Price Action Importance
in the Market
Nothing can really beat price action. When
the laws of the market are up to us, we can
really milk it to the best utilities, here are
a few ways of doing it.
First up, never alter your market studies once you are in the trade.
It is better to stick with the simple plans for trading,
here I have taken a few price action studies that have resulted in
Profit. This had been taken after studying the sector properly for a
relative strength against the market. Price action compliments your
learning in a big way and you can really get through a lot of spikes
and choppy movement if you just stay out of the market and watch
from a distance. Price action will invite you to be a part of the trade
when it is time.
The problem of doing overtrade s almost eliminated if you can
back it up with learning from quality books and other places.
Do not listen to people who say that the price action is going
to silver key for cracking all markets all the time. There will be
times when your market analysis will fall short. Because not
every time will all the traders function in the same way and take
the market analysis in the same way. So price action might
not see the best outcome in such a situation. However when
it comes to most markets at most times, price action will definitely
work for sure., You have to trust the studies from the past and
project on the current charts to anticipate the future. How can you
play it safe, and find out the possible places for getting the
right margin of safety for your trades? Enter at confluences of
multiple studies. Do not take the risks of going by one indicator,
virgin studies are okay but are you really okay betting on it alone?
Remember,
it is important that you understand whether the strategies of price
action are backtested by you or not. You may learn a box full of
things about price action and the market but you may never
know whether your studies would have really worked or not.
So, it is always important to do paper trading on websites before
you deploy your own hard-earned money into the market. You
should always give the opportunity to market to take money from
you, be in drawdowns, and see if you can bounce back up.
If you are only thinking of 100% profits, every single time. Price
action or any other strategy will never be able to guarantee you
that, and you should not be aiming to achieve that either.
Pure Price Action & Gapup
Strategies for intraday
After gap-up always check for retracement and find
areas of support. This will show you the bigger picture.
Look for confluences and then take the trade on a
breakout and breakdown.
Never make an early entry in such scenarios.
Usually, the market may be in a sideways
movement for a longer time and may never show
any movement. In such cases always use some
strategy that works sideways. It will help you find
the perfect setups for playing in options.
Usually, market reversals and continuations are
something that you should watch out for, that
will keep you in the game and let you take a
step a few yards ahead of the game.
Lastly, don't complicate things, don't overdo
your analysis. Hunt for the areas of reversal or
breakout from past chart patterns. In the Market,
it is said that history is repeated. So, it's better
to stick to the basics and follow the major trends
and keep in sync with the market. It has happened
that the more contrarian position that I have
taken, despite seeing the major trend against me,
the more losses I have incurred. I have noticed
that it works for me, when I just follow the
demand-supply zone and do not bother about
most indicators, etc. Please do your own due
diligence before investing etc.
These are some best books on price action
trading, in my opinion on the following topics-
Learn price action from
the professionals.
Read these books.
Understanding price action is quite important to be
able to be on the right side of the trend. Never
take the risks of taking uncertain positions in the
market. Play with limited capital and limited risks.
But, when it comes to this “play” is not really a gamble
on money, rather you get to use the significant leverage
that your learning and risk management teaches
you over the years. Always try and couple price
action with the other things in the market like data
and news. But, when you have a solid foundation in
the market through price action. Even when
you are wrong, you will know how to accept
your defeat and remain on the sidelines and
watch the market from a distance.
Strategies are the most important part of the
trading world. It doesn’t count even if your
analysis is awesome. Strategies need to be in
place to make you go through the analysis and
give you the right style of trading mindset. In trading
and the stock market in general there is a concept
of putting a stop loss and the target profit price.
As someone who understands patterns and
strategies well, you can effectively trail your stop
loss to the target price. And, the best thing is
even if you are wrong most of the time,
you may not be out of the market with proper
risk management. That is where the concept
of risk to reward comes in. The concept of risk
to reward is hinged on the fact that whenever
you enter a trade always look for the places
where you can find small risks to take and can
relatively take longer bets in the market.
Something that can keep you in the long
run in the market is always the ability to
handle your money well and compound
over time.
Trend following is simple to understand and takes
a lot of time to grasp really. It will take you a
lifetime probably to master the effect of the right
learning. You can go wrong in the beginning and
get your stop loss hit frequently, but in the long run,
when you keep the time and patience on your side,
you really seem to get a lot out of your learning.
Price action trends may not take long for you to
learn but it may take you enormous time to
master and put into perfection. Because it's just
not about the money, but also the
psychology behind it.
How To Read Price Action Through Candlesticks
Japanese candlesticks have secrets that can help
you with advanced price action. You can learn so
much from the easy understanding of the market
and the prices. Understand the nature of the candle
by reading more about the candlestick sciences.
This will help you gauge the market sentiment
and rightly predict the trend. Even if you can’t
predict, it’s important that you get to a point
where you understand the right trend in the
market. Price action strategies are all about
the prices and in order to understand prices
better, you need to know the candlesticks by
their true virtue.
Trading Using Price Action Like A Pro
Darvas's theory is very important a concept when
it comes to understanding price action strategies
for the long term. You can take to the case of this
trader, who traded the markets by some strict
and unique parameters. It is phenomenal how
simple ideas can make you so much in the market
too. Sometimes, it is okay not to be a genius or an
ultra pro max trader. You do not have to be a sniper
with too many skills like focus and control, just be
idiot enough not to forget the core learning you had
in the market all the while, utilize it to the fullest and
you should be golden.
Some ideas and philosophies on investing
Not everybody wants to be a trader in the market,
many still want to become one in the long-term
investors, and make a lot of money. You can still use
your price action knowledge and get along with the
concepts of this book. This book will basically give
you an idea about the fundamental analysis of the
company. You can learn so much about the right
ways to analyze a company that has profited in the
past and is all likely to make the same consistent
growth in the sector. You can of course check its
power by the past returns, but do your own due
diligence before parking a significant amount.
And, you could use the benefits of margin trading too.
Learn more about the margin trading facility
and the leverage trading options.
Margin Trading, Deep OTM & ITM
Up to 7% interest on your saving account
Conclusion
Price action technical analysis is a very good skill to
learn and if you are young and still exposed to
the technology you should definitely try and automate
the market trading via your knowledge. Trading price
action reversals, or for that matter price action
swing trading, everything is possible if only
you focus enough on the skills of understanding
the price behavior in the market over time.
Before you populate your screen with too many
technical indicators, try and base your learning
on the prices and the charts of a security or index.
It will keep you invested in the market in the long
run and will also give you wings while others
struggle hard to make money. Price action
can be your secret weapon against all odds.
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Investing in market risks may lead to a loss of capital
please consult your financial advisor.
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