Everyone wants to become a successful Forex trader. But mastering the art of trading is not easy. In fact, more than 90% of retail traders are losing money. Why are the retail traders losing money, even when they have access to free trading resources? It’s only because of lack of knowledge and skill. Though there are many ways to trade the Forex market the pro traders always prefer to trade the market with price action confirmation signal. But do you really think you can change your life by trading the market with price action confirmation signal? The simple answer is no. You need to learn more about the most common mistakes in price action trading strategy to improve your win rate.

Being a new trader, it’s normal to make mistakes in trading. In today’s article, we will highlight the key mistakes made by novice price action traders.

Trading the lower time frame

Lower time frame trading is often considered as the riskiest way to make money. In fact, the pro traders always suggest that rookie traders trade the market in the higher time frame. It’s true, you will get many price action confirmation signal in the lower time frame but the quality will be very poor. You need to find premium trade setups to make a profit from this market. The only way to ensure this is to follow a higher time frame trading strategy. Being a higher time frame trader, you will get a few trade setups in a week. But this will never a problem since quality always beats quantity.

Trading against the major trend

The traders are always trying hard to maximize their profit factors. In fact, they often go for ib Forex program to create an alternative source of income. Some of the rookie traders often trade the top and bottom of the currency pair to make a huge profit from this market. But the moment you start to trade against the major market trend is the very moment you start losing money. Even though you will be using price action confirmation signal, it’s imperative that you trade along with the market trend. Never think you can make a big profit by going against the market. Stay with the market trend to limit your risk factors.

Trading without any confirmation

Some of the retail traders often trade the market without having any confirmation signal. For instance, you might spot a bullish pin bar right at the critical support level. The new traders will execute a long trade without having any confirmation signal. On the other hand, the pro price action traders will wait for a bullish candlestick right after the pin bar. The bullish candlestick will act as a confirmation signal which will dramatically increase your win rate. So, think twice before you execute any trade. Try to use the price action confirmation signal to increase your win rate.

Avoid trading the news

The new traders often think a price action trading strategy can generate profit at any market condition. But if this were true, no one would have lost money during the event of high impact news. Being a professional price action trader, you need to avoid trading the major news. Fundamental factors act as a major price driving catalyst. Unless you learn to analyze the fundamental news, you should never trade the market. Even after mastering the price action trading strategy, it’s better to wait in the sidelines in the event of the major news release.

By now, you know the most common mistakes made by the price action traders. If you can avoid these mistakes, you can easily make a profit in the long run. Stop taking aggressive decisions in real life trading. Follow a conservative trading technique and no matter how well you understand this market, stop trading the market against the major trend.