Those who are trading the market for a long period knows the importance of price action trading strategy. Even though there are many ways to trade the live asset but the smart traders in Hong Kong prefer to trade the market with simple price action trading system. It allows them to find great trades with very low-risk exposure. On the contrary, the inexperienced traders are using indicator based trading strategy and losing a big portion of their investment. But they are not the one to blame since they don’t know the key advantage of using price action signal.
In this article, we are going to highlight four amazing benefits of using the price action confirmation signal.
Allows you to trade the major news
Trading the high impact news is a very challenging task. Unless you have years of experience in trading the Forex market, you can’t make a profit in such a volatile market. But what if you know the price action trading strategy. By using simple price action confirmation signal you can easily trade the major news and make a decent profit within a very short period. But for that, you must learn multiple time frame analysis also. Try to find the key support and resistance level in the higher time frame. Once you have spotted the key trading zone, switch to the lower time frame (5-minute time frame for news trading) and look for a potential price action confirmation signal before a high impact news release.
Helps you to find the false trade setups
If you trade the market with the low-end broker, you will find many good trade setups. And eventually, you will lose a big portion of the investment. For reason, the pro traders always suggest visiting https://www.home.saxo/en-hk to learn more about the professional trading environment. Once you get access to a robust trading platform like SaxoTraderPro, you can easily use the price action confirmation signal to filter out the false signals. Instead of trading the market based on indicators reading you need to rely on the price action signal. You might have an overbought RSI but without getting a bearish price action signal you should never execute the trade. The candlestick acts as an excellent trade filter tool for retail traders.
Allows you to set tight stop loss
Those who don’t have the proper knowledge on price action trading strategy had to face a real tough time in setting up the stop loss. But if you learn the use of price action trading strategy, you can easily use a tight stop loss. The moment you will start trading the market with tight stop loss is the very moment you can increase the lot size without increasing the risk factors. Instead of testing such an approach in the real market use it in the Saxo demo account so that you don’t have to lose any real money. Things might seem a little bit hard at the initial stage but eventually, you will understand the method of trading.
Makes you a confident trader
Without having strong confidence you are never going to become successful in trading. Those who trade the market with indicators, EAS and bots never trade with confidence. But if you learn to trade the market with price action confirmation signal you will have strong confidence. Most importantly, you will win most of the trades. Once you start to win trades regularly, trading will become much easier. But does this mean you will never lose any trade using the price action confirmation signal? Losing is inevitable in trading. No matter how hard you try, you can’t avoid the losing trades. So, never trade the market with the money that you can’t afford to lose. Risk only 1% of your account balance since it will protect your trading capital.