At some point, the market movement stops, the sideways movement begins, and people start losing money because they don’t know how to switch from one market structure to another.
At such moments, the newcomers begin to doubt her strategy and blame her for the losses, eventually abandoning her altogether.
Such actions do not lead to good results. If a trader can’t keep his composure during a losing streak, then the market will beat him every new week over and over again.
At such times, you must keep in mind the four truths related to Price Action and Forex trading. These truths can keep you afloat and keep you from going crazy.
1. Price action is not a “system”
Price action is not a complete trading “system”.
This must not be forgotten.
You cannot unthinkingly believe every Price Action signal that appears, as it seems to you, on the chart. You have to think and choose the best entry opportunities.
You must be careful, start trusting your intuition, which will start to work properly only when you have enough bumps, that is, you gain experience.
2. Does Price Action work?
Price action appeared in the 18th century, and it worked then, it works now, and it will work in the future.
The thing is, Price Action is based on logical principles that work outside of the market.
At the same time, do not forget about the losses that are unavoidable. Price action is not the holy grail.
You must be disciplined, be able to understand and correctly use the signals that Price Action gives.
Even the best traders have unprofitable positions, while professionals don’t let losses destroy the entire account. Also, profitable positions cover losses, after which there is still money for life!
3. Candles and Price Action
Many beginners, having studied the Price Action patterns a little, having learned the candlestick formations, rush into the trade and lose money.
Price Action is not just candlestick formations, the main strength of Price Action is to read the whole chart and understand the situation, understand how the price moved before, how it moves now and what is likely to happen in the future .
You must learn to feel the mood of the market, not be afraid to look at the older time frames, be able to keep an eye on the panorama general.
It is the poet who advises to trade on higher timeframes so as not to lose sight of the movement of the main trend.
4. Persistence in trading
Forex trading is not the easiest activity that requires you to improve every day.
If you decide to truly become a profitable trader, you will inevitably start to develop the best of yourself and destroy the worst.
Trading will make you a disciplined and stressful person.
You will deal with losses correctly so that they do not lead you astray.
You will take the time to plan not only their transactions in the market, but also its life usually.
You will have to start doing all this, because otherwise you will not be successful in this business.
Trading is a test of your stamina and mental abilities.
You shouldn’t go crazy with losses and you shouldn’t lose your mind when making profits.
You must not doubt your strategy in losses, you must analyze.
Without all of the above, trading can destroy you and your account.
Work on the mistakes, rest when you feel that you are losing control of the situation, develop and analyze the elimination of harmful emotions.
You need to treat trading like a real job, seriously and responsibly, and then you will stop losing and start earning.
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I’ll be happy