Price Action trader 10 Things to Follow A trader is a person who engages in the buying and selling of financial instruments such as stocks, bonds, commodities, and derivatives, with the goal of generating profits. Traders can work for financial institutions, hedge funds, or be self-employed. They may specialize in a particular asset class or market, or they may be generalists who trade a variety of instruments. Traders use a variety of tools and techniques to make informed trading decisions, including technical analysis, fundamental analysis, and risk management strategies.
What is Price Action Trading
Price action trading is a method of technical analysis that involves analyzing the movement of prices over time, rather than relying on indicators or other technical indicators. Price action traders focus on patterns and trends in the market and use this information to make trading decisions. These patterns and trends can be identified by looking at things like candlestick charts, chart patterns, and support and resistance levels. Price action traders believe that all relevant information is reflected in the price of an asset and that by analyzing the price action, they can get a good sense of where the market is likely to go next. Price action traders often use a combination of price action analysis and other forms of technical analysis to make their trading decisions.
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10 rules of price action trader
- Trade with the trend. This means looking for buying opportunities when the market is trending upwards and selling opportunities when the market is trending downwards.
- Use price action to set your stop loss. This means using the natural fluctuations in price to determine where to place your stop loss order, rather than placing it at a fixed distance from your entry point.
- Use price action to identify key levels of support and resistance. These are areas where the price is likely to find either buying or selling pressure and can be identified by looking at past price action.
- Look for price action signals, such as pin bars, inside bars, and fakes, to enter the market. These signals can give you a high-probability entry point into a trade.
- Look for confluence when taking a trade. This means looking for multiple price action signals or other forms of technical analysis to support your trade idea.
- Take partial profits at key levels of support and resistance. This means closing a portion of your position at key levels in the market, rather than holding on to the entire position until the trade reaches your target.
- Use a trailing stop to lock in profits. A trailing stop is a stop loss order that is set at a certain percentage or dollar amount behind the market price as it moves in your favor.
- Don’t over-leverage your trades. It’s important to manage your risk and not put too much capital at risk on any one trade.
- Don’t let a losing trade turn into a bigger loss. If a trade is not working out as planned, it’s important to cut your losses and move on to the next opportunity.
- Keep a trading journal. It’s important to track your trades and analyze your performance in order to continually improve your trading skills.
10 Books For Intraday trader
- “Trading in the Zone” by Mark Douglas
- “The Disciplined Trader” by Mark Douglas
- “How to Day Trade for a Living” by Andrew Aziz
- “Day Trading and Swing Trading the Currency Market” by Kathy Lien
- “Technical Analysis of the Financial Markets” by John J. Murphy
- “Trade Your Way to Financial Freedom” by Van K. Tharp
- “The Art and Science of Technical Analysis” by Adam Grimes
- “Intraday Trading Techniques” by Jeff Cooper
- “The Complete Guide to Day Trading” by Markus Heitkoetter
- “The Daily Trading Coach” by Brett N. Steenbarger