Professional trading strategies: #11: Professional Price Action Trading Strategies


Any person who commits capital with the expectation of financial returns is an investor. Common investment vehicles include stocks, bonds, commodities, and mutual funds. Whatever is wrong in your life will eventually carry over into your trading performance. This is especially dangerous if you haven’t made peace with money, wealth, and the magnetic polarity of abundance and scarcity. Keep your trading needs separate from your personal needs, and take care of both.

selling pressure

This is when some positions do not move within the day, which is to be expected. When a new momentum high is made, traders will look to the highest probability trade, which is usually to buy the first pullback. However, when a new momentum low is made, traders tend to look to sell the first rally. The Martingale system is a system in which the dollar value of trades increases after losses, or position size increases with a smaller portfolio size.

An expansion could really work in your favour. And if the price continues lower, this cluster of stop loss will get triggered which will induce further selling pressure. Imagine if the price were to continue lower, these clusters of stop loss will get triggered and that will induce further selling pressure. Scalping only works in particular markets such as indices, bonds and some US equities. Scalping requires very high volatility and trading volumes to be worthwhile. ​ of around 1/1, it’s common for scalpers not to make a large profit per trade, instead focusing on increasing their total number of smaller winning trades.

#2: The truth about growing a small account fast (that nobody tells you)

Every trading loss comes with an important market lesson if you’re open to the message. Also, know when to quit and take a break from trading. Accept the losses, take time to regroup, and then come back to the market with a new perspective. If you’re trading a stock trend following strategy which makes money in a bull market, then a bear market or recession won’t be favourable to your trading strategy. Because if you are a breakout trader who went long, your stop loss is a sell order.


​, you will encounter several popular trading strategies. You may also find that your success using one strategy will not mirror someone else’s success. Indeed, a passive index strategy seems to be best for most long-term buy-and-hold investors.

Take a small trading account and grow it to 7-figures within a few months. Now, if the price is far away from the area of value, you want to avoid trading in the direction of the trend. This technique is not about entries, it’s more about knowing when to stay out of the markets. You can see a series of higher lows into the area of resistance, and there’s a buildup over here, nice and tight. Understand that the market moves from a period of high volatility to low volatility. At this point when the market is forming a buildup, it’s in a low volatility environment.

#1: You won’t make money every day

And it’s usually the opposite of how your trading strategy makes money. And for a few years, I thought that’s all I needed because after all, the price is king and that’s all I needed to be a profitable trader. I started with indicators, then price action trading. If your entire net worth is in your trading account, then risking 1% on each trade is still hard to stomach. But that’s not the complete picture because it doesn’t state how much of your net worth is in your trading account. Depending on your trading strategy, you can use things like stop loss, options, reduced leverage, position-sizing, etc.


Additionally, trend trading may involve playing ‘both sides’ of the market. Stay alert for signs that the trend is ending or is about to change. Also, keep in mind that the last part of a trend can accelerate as traders with the wrong positions look to cut their losses. Many traders look to trade European markets in the first two hours when there is high liquidity.

Clearly, the right thing to do is to continue trading the strategy . If every time you toss a coin and it comes up head, you win $2. In layman’s terms, an edge is something you do repeatedly that yields a positive result.

Benefits of day trading

The number of actual trading days during a typical calendar year, as most markets are closed for holidays and weekends. Drawdowns are a natural part of the trader’s life cycle. Accept them gracefully and stick to the time-tested strategies you know will eventually get your performance back on track. Don’t try to make up for a losing trade by trading more.

This style of trading requires less time commitment than other trading strategies. This is because there is only a need to study charts at their opening and closing times. Every day, there are several news events and economic releases that can provide trading opportunities. You can follow crucial news announcements by monitoring our economic calendar.

Scalpers do not hold overnight positions and most trades only last for a few minutes at maximum. Some trades will be held overnight, incurring additional risks, but this can be mitigated by placing a stop-loss order on your positions. Swing trading can be more suitable for people with limited time in comparison to other trading strategies. However, it does require some research to understand how oscillation patterns work.

Booking reliable profits in financial markets is harder than it looks at first glance. In fact, unofficial estimates suggest that more than 80% of would-be traders eventually fail, wash out, and turn to safer hobbies. You should reward yourself whenever you follow your trading plan regardless of whether the trade is a winning or a loser. It doesn’t matter if you have the best trading psychology, risk management, favourable risk to reward ratio, etc.

Can Investors Beat the Market by Picking Stocks?

Monitoring the slightest price movements in search of profits can be an extremely intense activity. It’s therefore not recommended for beginner traders. A lot of research is required to understand how to analyse markets, as technical analysis is comprised of a wide variety of technical indicators and patterns.

The first is to identify a set of strategies that make more money than they lose and then to use the strategies as part of a trading plan. Second, the strategies must perform well while the market experiences both bull and bear impulses. The end-of-day trading strategy involves trading near the close of markets. End-of-day traders become active when it becomes clear that the price is going to ‘settle’ or close. When it comes to trading strategies, they can all perform well under specific market conditions; the best trading strategy is a subjective matter.

End-of-day trading can be a good way to start trading, as there is no need to enter multiple positions. It’s natural for traders to emulate their financial heroes, but it’s also a perfect way to lose money. Learn what you can from others, then back off and establish your own market identity, based on your unique skills and risk tolerance.

Now what you need to do is to identify the market condition which is unfavourable to your trading strategy. For example, a stock trend following strategy can be used to profit in a bull market. Today, I have multiple trading strategies across different markets—which results in a smoother equity curve of my portfolio.

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