Godson1
New member
If you want to be really good price action trader, you have to understand this concept of how price moves in swings. this is especially true if your style of trading is trend trading or swing trading.
because if you don't understand how price moves in swings, this is what you are going to end up doing;
1. You will execute trades at the very wrong spot. For example , in a downtrend , you will see when the market is just doing an upswing not good
2. Which means you will get stopped out or you need to put in a large stop loss. Large stop loss does not necessarily mean large risk if you do position sizing base on the stop loss distance. But if you don't then that's a large risk you are taking.
3. If you have a large stop loss, then you have got to wait a while before the market makes downswing before you to start seeing profits on your trade.
because if you don't understand how price moves in swings, this is what you are going to end up doing;
1. You will execute trades at the very wrong spot. For example , in a downtrend , you will see when the market is just doing an upswing not good
2. Which means you will get stopped out or you need to put in a large stop loss. Large stop loss does not necessarily mean large risk if you do position sizing base on the stop loss distance. But if you don't then that's a large risk you are taking.
3. If you have a large stop loss, then you have got to wait a while before the market makes downswing before you to start seeing profits on your trade.