The price action trading method is by far the most effective way to make money in the retail trading industry. The majority of the elite traders in the United Kingdom prefer the price action trading method as it allows them to make a big profit without having much trouble. Being a novice trader, you might be thinking that learning about the price action trading method is an easy task. But if you do the proper research, you will realize that learning about the price action trading method is not that easy. You need to follow some proper guidelines and only then you can find reliable trade signals based on price action trading techniques.

Now we will be sharing some powerful insight about the market and teach you the proper way to develop your price action trading skills. 

Choose your time frame

Most novice price action traders start their trading career by selecting the lower time frame. But lower time frame trading is one of the most complex tasks in the world. Even if you become good at trading, chances are high you will face many losing trades in the lower time frame. Moreover, the trade signals formed in the lower time frame are very frequent, and becomes nearly impossible for retail traders to find the best possible trade signals. So, learn to trade in a higher time frame as it will give you quality trade signals.

Learning about the basic patterns

Stop learning about the complex patterns at the initial stage. You should be learning about the basic candlestick patterns and trade in the demo account. Check over here and learn more about the professional demo trading account offered to the retail traders by Saxo. Use that account and try to take the trades at the important support and resistance level. If you become good at managing the trades at the important support and resistance level, you should be able to make a regular profit without having much trouble. So, trade the market in the demo account to develop your basic skills first.

Learn about the complex patterns

As you learn about the complex patterns in the market, you should be able to make the right choice. But to learn about complex patterns, you must have strong analytical skills about single candlestick patterns. Once you become good at analyzing the compound patterns in the market, you should be able to make wise decisions in the investment industry. Never expect that you can become a millionaire by using the complex pattern. Though it will increase your win rate to a great extent, still you will be facing few losing trades by using the price action trading method.

Finding the trends

To become good at price action trading strategy, you should be taking the trades with the major trends. If you take the trades with the major trends, chances are very high that you will be winning money most of the time. Never think you know every bit of detail about the market. Follow a safe protocol and try to take the trades with the major trend. In short, learn about the trend trading strategy and integrate price action confirmation signals with your system. Once you do that, you will become much more confident with your actions, and thus making regular profit is going to be a very easy task.

Trade with low risk

After mastering the price action trading strategy, you should be taking the trades with very low risk. If you take the trades with high risk, you will eventually mess things up and blow up the trading account. The maximum amount of risk which you should take per trade should never exceed your comfort zone. If possible start risking only 1% of your account balance in each trade. And if you do so, you will never feel pressured in your trading career.