18. Precautions & Conclusion With Price Action Trading

Forex-Price-Action-Trading-Course

Some things we have learnt:

  • Levels are not lines drawn in concrete, they get broken. You see, the more a level is tested multiple times, sooner or later it will get broken. From our observations, 2-3 times is the average, after that, expect a breakout of the level.

 

  • Don’t listen to analysts. They can stuff up your decision-making process and cloud your judgment.  For example, you see a sell setup on my chart but because you’ve read the analysts report that says he is bullish on this currency pair because of this and that reason, you hesitate to pull the trigger. Later, you check the chart and see that If you had sold, you would have made money. So use your own independent judgment based on what you see on your charts.

Read: How To Trade Volatility Indices Like Forex

  • Find your best timeframe to tradeYour personality, work circumstances etc may dictate what timeframe you can use. For us, we can trade from the 4hr, 1hr down the 15 min charts because we use multi-timeframe trading. Yes, there will be people that will say “You are crazy to be trading in the smaller timeframes like the 15min  because there’s too much noise in the smaller timeframes.” Yes, we know that…The whole point of us switching to lower timeframes is this: to get better trade entries. You don’t have to do that, that’s our styleThat’s what we like.

 

  • If the bus leaves you, don’t chase the bus! In other words… don’t chase trades. If you are late to get into a trade at an optimal entry point and realized that you might “miss out”, then back off and wait. There will always be another opportunity or wait for a retrace/retest/pullback etc and then enter.

 

  • Be patient for the right trading setups to form.

 

  • If you are suffering from losing streaks, take a break. Take a week off from trading to clear up your mind then come back with a clear mind to trade.

 

  • If you have winning streaks, don’t get overconfident and risk more. You streaks of losses may be just around the corner.

 

  • Trading is a practical endeavour, all the things we have taught you in this course won’t do you much good if you do not put into practice. Open this demo account to test all you have learnt here.

 

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