Learn Price Action Trading to get rid of emotions in trading

By | June 15, 2013

Most of  traders during my interaction with them says the following ” Looking at most of indicators which were oversold we took long in market but the market keep on falling down and we need to bear huge loss” .

Once the position you are holding is down by 5-6%, traders will not be interested in booking loss as their emotions will overpower them stopping them from booking loss and giving assurance market will bounce back. Sometimes they get Lucky market do bounce back giving them space for exiting positions in minimum loss for those unlucky their trading account goes bust and they are forced to quit the market.

So how to tackle the emotional side of trader and reduce his dependance on indicators?

Price action trading strategies provide  high probability entry signals and also keep the emotional side of trader under control.Most of traders know that to find success in trading they need to be disciplined . However, very few traders understand just how much the specific trading strategy they use can influence their mindset and emotions. Since not trading off of emotional impulses is a necessity for making consistent money in the market, it is of paramount importance to use a simple method like price action trading so that you do not unknowingly contribute to your own confusion and struggle in the trading.

• Having Control on your trading emotions is key to your long term success

If you want to have consistency in your trading profits and be at peace with yourself not worrying where Dow is closing or Fed is tapering the QE Infinity , you will really need to first understand why emotional management is so critical to trading success. The reason emotional management is so vitally important to trading success is because the market simply does not care about how you feel or what you think. This means that the more you trade based on emotion, the more money you will lose. It may take a year or even 5 years for you to blow out your account, and you may have many winning trades in between, if you do not learn to control your emotions while trading the market you will eventually drop into the 90%  of losing traders.

• Complex Trading Strategies can easily induce emotional trading, leading to lost money and lost time.

I have seen many traders who put on fancy indicators Like MACD,RSI, ROC, Fibonacci numbers, Gann Fans etc etc when they analyses / trade the market. I am not disagreement that these indicators does not work, they do work but using so many indicators can confuse a trader,eventually making wrong trading decisions. These system no doubt looks nice and sophisticated but they are not tradeable set ups in long run.

If you are using a trading strategy that is too complicated  or is just simply too confusing for you to understand, you are likely to end up entering trades out of desperation or frustration. 

 

• Keep It Simple and Stupid (KISS)

The simplicity in price action trading  will work to make a traders thinking as  emotion-less market.You will not be concerned about Indicators in Oversold range or market approaching a support levels.  This type of objective thinking pattern is the cornerstone of consistently profitable trading, and the fact that many traders lack this thinking pattern is the biggest reason why most traders fail in the end.

Price Action trading Strategy are developed on KISS concept, We just need to study the price without confusing our self with tons of fancy indicator.

To summarize ,  The real difficulty in achieving  trading success lies in the fact that most people lack the ability to keep themselves accountable each day and maintain an objective mindset. So, if we can acknowledge that  trading is not really as technically difficult as most people think it is, but that the real difficulty lies in maintaining control of your emotions, it only makes sense to use a simplistic, logical, and effective method like price action trading strategies.

 

Learn To Trade Price Action – If you want to get a comprehensive price action trading education on the exact same strategies that I use to trade the market with, check out my  trading course . These Courses are conducted online on 1-1 basis.

7 thoughts on “Learn Price Action Trading to get rid of emotions in trading

  1. Phani Kiran

    Hi Bramesh,

    I am a day trader trading in Nifty. I am from Hyderabad and am interested in your Price Action Based trading course. Please provide me the fee structure and other details.

    Thanks & Regards
    Phani Kiran

  2. Bramesh Post author

    Dear Harish

    Weekends am busy with my Trading classes so schedule remains quiet busy .. hence unable to post..

    Rgds,
    Bramesh

  3. harish

    sir, i am reading your blogs from last 2 months, you are not analysing FII & Open interest data on week-end, can you please do that, most of them will get idea of what is happening in market, take this as a request & oblige

    harish

  4. amit kulshrestha

    sir, your article about trading are very helpful for beginer like me. I want to learn from you.kindly send details.

  5. Bramesh Post author

    Dear Sir,

    Thanks for your kind words of appreciation. During Weekend am quiet with my commitments hence unable to post FII data analysis.I have sent you my course details on your mail id. Please check the same. Please check your spam folder also.

    Rgds,
    Bramesh

  6. Raju Patil

    Mr. Bhandari,
    why you are not giving FII and Nifty analysis on saturday for trade happened on Friday. even on monday also it comes after opening the marekt.

    Your this blog is very nice and I like it most. I have red many blogs and many technical analysts and still keep mind open to welcome all intellegent and logical explanations from all.

    I found yours the most trustworthy suggestions and analysis. I am following you site since last one year. I am very much impressed with the analysis you always do.

    I am insterested to go for your tech course programme once My Travelling takes halt. As My Job is Sales Head. I need to travell a lot.

    Please provide me the information for fees and course duration and timings for online study one to one basis.

    thanks for giving the timely opinion and suggestions.

    Regards,

    Raju Patil

Leave a Reply