How to trade like a professional trader A strategy is always the underlying reasoning behind the savvy professional’s entry in the market, he is not just entering randomly, not at all. He (or she) is calculated, he is reading the chart and he is reading the emotion of all market participants in that chart (price action), he sees and feels the clues being printed day by day. He pounces with precision, striking his prey (the herd) with ice in his veins. You’re probably wondering what strategies one can employ to trade in this manner. Some of the greatest traders have said you only need a simple horizontal line to trade the market successfully. I take that one step further and add price action confirmation signals, e.g., pin bars, false breaks, fakeys and so on, that occur at these horizontal lines. By trading at and around these key chart levels, we can also apply stricter risk control. It’s often as simple as saying, if below this level, we expect it to fall, or if above this level we expect it to bounce. As can be seen, key horizontal levels allow for ideal risk management. It’s often why markets reverse on a dime on these levels and round numbers and so on. Try drawing them in on your charts each day and week and you will see their effectiveness for yourself. When you combine price action with key levels, you’re now starting to see the market like a professional and you’re gaining the ‘unfair edge’ over your competition in the market.
Posted on: Sat, 30 Aug 2014 07:15:41 +0000
Trending Topics
Recently Viewed Topics
© 2015