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Considering diving right into the Sea of financial industry known as Foreign exchange or Forex? Well, before that, " Are you really prepared to face the most volatile market head-on? " Ask yourself that! To be frank, one of the major factors which we ignore most of the time is "prioritizing our own perspective," and which obviously pays us back in the long run. Knowing ourselves should be our primary objective and that does not only bind to online forex trading except it also implies in our day-to-day life. So, before anything, "Knowing yourself" should be your GO-TO. Now, let's move on to today's topic which deals with the term" know yourself and its effects on trading". KNOWING YOURSELF IS MORE IMPORTANT THAN KNOWING THE MARKET And, to be honest, while trading is one of the prime aspects that should not be neglected at any cost. So, if we ask you, "How do you really know yourself?" What will be your initial comeback to this? And...don't feel pressurized yet. We don't know about you but as per Aristotle, "Knowing yourself is the beginning of all wisdom". And that's not it! Famous public figures like Carl Jung also quoted that, Did you get the significance of understanding yourself? BETTER! Despite all of this, you may start to wonder, " How can I really know myself, you're kidding right ?" Let's face it! Anyone will think of this as similar to what you're viewing and which is totally justified. In order to know yourself well, you can take several steps. Any BRIGHT ideas? No worries! If you don't come up with anything at this moment, we got you. I mean, that's what we do! Help you in certain ways so that you don't get stuck anywhere in your online forex trading career. P.S: In case you’re drowning in the Foreign exchange industry while searching for a trading broker to pull you up then AssetsFX might be the IDEAL choice for you! Bearing that in mind we're gonna breakdown some of the most EFFECTIVE steps that will help you master yourself as well as sharpen your trading senses. So that being said, let's dive right in, But before bragging all about the psychological facts and myths used in trading, how about highlighting some of the basic steps which can lead you to know yourself BETTER. Why is that? Because trading is mostly a profession. So, before knowing the things about your profession, you should rather know yourself completely and in that way, you'll find self-confidence along with a better overview of yourself. In order to attain that, you can follow the ABSOLUTE steps stated below: TAKE SOME TIME AND "BE QUIET" We really can't deny the fact that while we stay quiet and think something through, it becomes quite easier. And that's not even a CAP! As it's often considered a universal truth. So, what you've to do is, give yourself some time and ask yourself stuff before actually doing them though it might get uncomfortable sometimes because you're probably alone at that time but trust us, it works like MIRACLE! And you'll find that against all the odds you're being true to yourself and that counts BIG TIME. And exactly at that moment, you'll be able to discover the true self of yours which is hiding DEEP inside you. FOCUS ON WHO YOU ARE RATHER THAN WHO YOU WANT TO BE Let's face it! Ask anyone out there, "what do you want to be?" And guess what? 98% of the people will give you a fancy answer and when you're done, ask them, "who you truly are?" it will be an odd silence, nothing more, nothing less. Believe it or not, that's the BITTER truth. Because nowadays, no one really focuses on who they are. Instead, they want to become someone else, and that's the root of self-confidence issues. Remember that, in this ever-evolving cruel world, no one is really perfect as everyone lacks certain things, but that doesn't mean that you won't discover yourself fully. Instead of becoming someone else, find more about yourself, evaluate the chances and take proper actions. As per, our friendly neighborhood Spiderman (Peter Parker), So, it's high time, take the leap now cause it's now or never! DISCOVER YOUR COMFORT ZONE AND DISCOMFORT ZONE Finding out certain things, such as what you're good at as well as not good at is one of the most crucial initiatives which performs a HUGE impact on your way to knowing yourself BETTER. Though it'll probably take quite a long time or sometimes more than expected for you to find out in which things you're good at or passionate about and in which things you're not. As an example, while performing this process you'll discover certain things which will give you comfort along with confidence and make you think," Yes, I can do this". And at that point, you'll know that the procedure which you were undergoing was successful. But wait, there's more! While exploring yourself, you'll also come across several things which will at first trouble or bore you but after doing a few attempts, you'll become fond of them eventually and online forex trading is one of them. That's why Yvan Byeajee stated that: So, these are the steps that can help you to know yourself even better than ever but while trading the approach usually varies from the ones stated above. Let’s dive right into them, shall we? FIGHT THE FEAR As per many trading associate publications and surveys, almost 95% of the traders face a common feeling, which is obviously the fear of losing money. So, how's it connected to knowing yourself? Well, while trading, knowing yourself is more crucial as well as significant than knowing the market. While trading asks yourself first if you can really pull this one up or what'll be your approach if you lose money, i.e. Finally, if you find your inner confidence that you can accomplish this trade for better, then open that trade not before. Trading psychology holds quite a significance in order to trade better. That's why it might be wise to interact with experienced market traders to know about their ADRENALINE. If you can find that out, it'll be a lot easier for you to fight the fear of losing your capital unless you won't be able to trade comfortably. If you still face hesitation, check out several Forex forums to get a better disclosure. Besides, BabyPips might be the ULTIMATE destination for this approach as they have a dedicated category for trading psychology only. See that? Tell us it’s not fascinating! DON'T CHASE THE RABBIT INSTEAD START THINKING Chasing the rabbit is one of the terms which has the ability to express a significant meaning, and in this context, it means don't chase after money, instead evolve your trading method. As a reason, Alexander Elder stated that, The goal of a successful trader is to make the best trades. Money is secondary! Did you get the point? It's okay to think about winning the trades, but at the same time, you should always be prepared for the worst-case scenario. The online marketplace is more volatile than ever, which means there's a pretty good chance that you might lose all your money. Therefore, a proper mindset is needed in order to trade in the online trading market. As per David Sikhosana, It's no doubt that the market will test your emotion in every way possible but the real question is, "Do you have what it takes to get back up against all the odds?". If yes, then welcome to the online trading sphere. You'll be able to survive here in the long run despite all the difficulties you’ll face. RID FROM ALL THE DISBELIEFS There are often certain traders who possess various disbeliefs both in their personal and professional lives. And as far as we know, online trading is mainly part of one's professional life. Now, let's move onto the main point, while trading you should always try to get rid of all the negative beliefs which you have as it can often conflict into much more of an issue and can turn against you. Besides, these conflict beliefs usually inherit from families, and that too most of the time. But on some occasions, society also produces certain impacts which later on leads to several disbeliefs. And trust us, if you're a victim of conflicting beliefs then you should work on that ASAP unless you won't be able to go through the HEAT of the online trading sphere. You're getting it, right? AT A GLANCE: As we've come to an end to today's discussion, let's summarize the key takeaways once more. They simply go like this: Take some time and "BE QUIET": It's always a wise decision to give everything a PAUSE and think the stuff through. So, do that! Focus On Who You Are Rather Than Who You Want To Be: Always give top priority to becoming yourself first instead of becoming someone else. It'll pay off! Discover Your Comfort Zone And Discomfort Zone: Point out the things which you're passionate about along with the things you don't like. You'll get a BRIGHT idea about yourself! Fight The Fear: Having any sort of fear or phobias won't let you fly freely in this financial sphere. Try to get rid of them! Don't Chase The Rabbit Instead Start Thinking: History has deliberately proven that chasing after money is not the solution. There are other possibilities, explore them! Rid From All The Disbeliefs: In this modern and evolved civilization, there is no place for disbelief. The faster you get rid of them, you'll succeed! Lastly, let’s hope that you’ll find these contexts helpful along with applying them in your day-to-day life (on and off trading). That being said, we're putting it to a conclusion.

Have you read this far? Appreciate your time and effort then. Anyways, I bet that the concept behind price action trading is now at least 70% clearer than before. And... if you ask us, that's the starting of something BIGGER. As a token of appreciation, we'll share 7 SUPER effective price action trading tips to make the wholesome trading journey even more accessible. Therefore, let's get going already, shall we? 1. Prefer Multi Candle Patterns Pursuing more patterns over a single one might be the ideal choice as it has been proven several times when it comes to the reliability of candlestick patterns. Therefore, using three ways instead of using one would bring BETTER results. An example of sorting things out: Have you guessed the charting pattern yet? Well, if you didn't, it's known as the "Head and Shoulder" pattern, which is probably a GO-TO trading indicator for numerous retail traders. Apart from that, it would help if you also preferred using top-tier indicators like the double top, bottom, and cup & handle. Wondering why you should prefer them over other indicators? Simple! These indicators deliver consistency while opening high probability trades. However, that doesn't mean the other hands are flawed or ineffective and lack consistency. After all, the term consistency matters the most regarding online trading. 2. Don't rush; wait For Confirmation Theoretically, waiting for confirmations means entering the trading market with 100% consciousness, not the other way around. As per PRO market traders, opening trades after the patterns get completed is always the IDEAL move because, in that way, you'll get a proper follow-through of the market. That said, we'll strongly recommend you enter at a little bit above or below until you're entirely watched up with the market movements. This will come in handy IMMENSELY when the market reverses on you, as you'll be prepared to fight that worst-case scenario HEAD on. Besides, if you're possessed with a bad habit of entering trades before the pattern completes, then you should try to avoid it as it can cost you a lot. Besides, choosing an ideal and Lightning-fast execution broker such as AssetsFX is also part of the journey that will ensure you get access to the best available trading charts and other trading tools and opportunities. You may face temptations over time when the patterns undergo their last stage but remember that the market can reverse on you anytime while leaving you with devastating outcomes instead of fruitful ones. Therefore waiting a bit should be the ultimate weapon in your toolbox. It makes total sense. So, you get the idea, we guess! 3. Place Your Stop Loss And Enjoy Every Bit Placing an order or simply opening a few trades is only considered half of the picture when it comes to online Forex trading. The real question lies, "where should you really place your stop loss?" Even though the Foreign exchange market is probably the most volatile in current times, fixed pips stop loss initiatives are hardly effective. Hold that thought; today, I'll show you how you can place stop losses at the exact point. Just like a BOSS, you see! When It's Above The Price Action In our opinion, this is the most straightforward approach you should roll with. In this likely scenario, after seeing a price action pattern, take the high position while adding a few pips (+5 should be enough here) and finally put your stop loss. Note: There might often come drawbacks while using this strategy which obviously will depend on the charting pattern you would be using. Besides, a BIG stop loss means smaller R: R as a reason the risk that'll come with the strategy should also be considered. When It's Halfway The Price Action When the pattern is so large that it's realistically not possible to put your stop loss above the pattern, this could be another option. This approach will come in handy when the pattern is usually too big. Besides, you may have already encountered them with pin bars containing long wicks. Though it's even riskier than the process, We've shared before as it's a mere possibility and haunches nothing else. But when you consider the R: R term, it's not bad of an approach, right? 4. Look For "Confluence" All The Time Confluence is literally everything. It's one of the most PROMINENT tips that you must know about, at any cost. Let's be a bit idealistic here, So, the best-case scenario is that you've found a juicy setup for price action trading. Bravo! Therefore, make sure that it has a confluence so that the strategy can get along with diverse signals that'll eventually support your visionary setup. Here are some triple top and high confluences that you should be aiming for: - The RSI ( when it faces divergence) - The Fibonacci ( the pattern often occurs at retracement levels) - The pivot point ( the pattern often occurs at pivot points) Moral: The more confluence you've on your sleeve, the BETTER the price action setup gets. 5. Find Out The Major Inflection Points First of all, what are inflection points in price action trading? Simply put, the major inflection points are specifically diverse fundamental behaviors of the market price movement. And... yes. We're talking about the giant spikes indicating market price movement rejection. This is usually where the big market moves happen not overnight, though. Looking at the following chart, the points (price areas) are crucial as numerous buyers and sellers opt to find them 24/7. Besides, many traders will put their stop losses and entry points in these areas. Therefore, you better look for them while you can. But how exactly? Here's an example just for you: Specifically, you should be looking for: - Influential spikes - A lot of suspicious activities - On significant turning points So, start looking for the subsequent BIG market spikes already! 6. Recognize Support And Resistance Zones ASAP Support and resistance ( aka S&R in short ) are the two most familiar terms used to define the lowest market price point, aka support. Likewise, resistance stands for the highest market price point. These price areas get tested too often by the retail market traders as they are simultaneously looking for specific activities at these points. Note: Support and resistance don't often occur as thin lines. Rather it represents arial zones. Here's an example to clear things up: So, if we're done observing the charting pattern stated above, a few things already make sense. So, first of all, the green rectangles ( stretched out ones ) symbolizes support and resistance zones. To be more specific, the support zones indicate lower market levels. On the other hand, the resistance zones indicate higher market levels. Note: The position of zones is not ABSOLUTE as it can switch places depending on the market movements. Trending Support And Resistance While we are at it, it's worth mentioning that the support and resistance levels are not only cut out to be horizontal; instead, the shape may differ. The chart clearly shows that a rising channel has been formed here through the lower and upper boundaries. Besides, the price moves along the line but eventually returns to its former state. Moreover, these aren't actual boundaries but rather more like zones. Dynamic Support And Resistance Dynamic lines can also be used while signifying support and resistance zones; for example, they can be executed using Bollinger bands or moving average trading indicators. Undoubtedly, it can be said that the support and resistance zones are indeed quite significant when it comes to increasing the market's activities. As a result, the price reacts to Arial zones while giving us opportunities to enter the market. 7. Remember! Context Matters Calculating the exact position where price action will appear, you'll have to judge each individually. For a reason, the same bar appearing in the price action can be both bearish and bullish, depending on the position. However, not all the bars are not worth implementing if they appear at the same levels as with other significant bars. Feeling a bit dizzy? Why don't you look at the chart instead? Then you'll know exactly what I mean. As we can see, several pin bars are resting upwards of the chart but don't carry much weight. Why? The market levels are inadequate, and that's why the significance of the pin bars there is lost in their value. Also, if you look precisely, you'll eventually see that instead of causing a market reversal, the pin bars are causing higher price grinding. Due to this exact reason, contexts are the top priority when it comes to price action trading. Conclusion If we have to conclude "price action simply," it won't feel complete as there are vast aspects to discuss. Also, you should be aware of numerous misconceptions about price action. Some of them will sound exactly like this: - Price action ensures a 1000% success rate. - Price action is a cover-up of Forex scams. - It is SUPER easy to learn. - Price action is only compatible with Forex trading. And... All of these are myths that are continuously trying to defame the price action indicators. So, watch out for them, will you? Besides, the learning process of price action is likely a long one, but once you get a hold of it, it pays off! So, ready to reach new heights in the financial markets with price action? Brace yourselves then!