Learn Price Action Strategies

A trader must create a strategy which they stick to when trading the online stock market. A trader must have the discipline to s broken then the sentiment of the strategy at all times. That's why it's best to come up with trade strategies that are profitable - profitable systems will be a lot easier to follow and stick to. This is because one knows that by following the rules of their indices system they will be successful.

A carefully designed strategy which has been back-tested & proven to produce profitable results is one of the keys to becoming successful when trading the market. This type of strategy will make it easier for trader to follow the rules of their indices strategy because they already know that the strategy is profitable, therefore maintaining the discipline required to continue following the system will be much easier.

Successful trade strategies will also include:

1. Indices money management guide-lines

2.Indices Psychology Mindset

These two will greatly improve the success of any system.

However, Let us look at price action strategy before explaining more about indices money management & indices psychology.

Price Action Strategies

Price action is the use of price movements to determine when to buy or close trades. Price action will use the study of patterns that form time and time again & these chart patterns can be interpreted in different ways. The trader will use this pattern to determine the likely market direction that the market is likely to take next based on the price chart patterns that have been formed on the charts.

In stock price action traders may use different methods to generate signals from the chart setups. Some of these techniques are:

Candles trading patterns - a trader may use the study of Japanese candlestick chart formations which is the study of various candlestick formations along with how to interpret these candlesticks formations. A candlestick pattern may consist of only one candlestick or a multiple of candles. To learn & know more about candlesticks patterns traders can find these candlestick chart patterns tutorials on the learn lessons of this web-site under the technical analysis concepts.

Support and Resistance Levels - traders can use price action & combine this price action with support and resistance levels. A trader will wait for price to hit the support level to open a buy trade & wait for the price to touch the resistance level to open a sell trade. The concept of trading major support and resistance levels is a very popular method in indices. For example in a upward trend a trader might wait & only open buy traders when prices hit support levels - at the same time a trader will take profit once the price hits a resistance level & then wait for another pullback to open a buy trade again.

To learn & know more about support and resistance levels traders can find these tutorials on the learn lessons of this web-site under the technical analysis concepts.

Trend lines - traders can also use trend-lines to determine price action direction or the market trend. For an upward trend line that shows the market is trending up a trader will open buy stock trades once price touches the up-wards trend line. For a downward trend that shows the general market direction is downwards a trader will open sell stock trades once the price touches the downwards trend line.

To learn & know more about how to trade with trend lines traders can find these tutorials on the learn lessons of this web-site under the technical analysis concepts.

Trading Patterns - stock chart patterns is different from candlestick patterns, these are two different methods of technical analysis, and traders should learn more about chart patterns in the lessons section of this website under the technical analysis concepts.

Chart patterns is the study of a formation of several candlesticks over a period of time. These patterns are consolidation patterns, trend continuation patterns and market reversal patterns. Traders can use the study of these patterns to determine the next likely market move.

Trading Strategy Tips

Once one has come up with their strategy, they should also include the following so that to make their strategy more successful.

1.Indices Money Management Rules Course.

2.Indices Psychology

Indices Money Management Guide-lines

Indices money management guidelines should be part of your indices strategy - the rules will help you as a trader to manage risk. This means that you will use two rules of indices money management - these are risk : reward ratio & draw down reducing method when placing your stock trades to determine lot size that you will open in the market. The most popular indices money management rule use in stock indices trading and the one that you should also add to your plan is rule which says a trader should never risk more than 2% of their account balance on any one single trade.

To learn and know more about these 2 money management guidelines, traders should read the trading equity management guide that's on the learn lessons section of this website under the trading key concepts lessons.

Stock Indices Psychology Mindset

In order for one to become successful when trading the market one has to learn about indices psychology. The indices psychology or mindset that is required to become successful in indices is one that avoids the emotions of fear and greed while trading the market & is a mindset of total discipline that one will follow all their rules & their indices strategy & only trade with signals that are generated by their strategy. With discipline one will not trade unless their indices strategy gives a signal. A trader will have the mindset of only following their indices system 100 % all the time without second guessing the system. A disciplined trader will also not place trades in stock trading market just because the market has started to move up-wards or downwards, instead a trader will wait for a signal to trade to be generated by their strategy.

In order to learn more about indices psychology & how to manage emotions while trading the online market a trader can read the psychology tutorials from the learn lessons section of this website under the trading key concepts courses.