There is a natural desire, especially by the initial trader, to want to trade excessively. This is not difficult to understand. Daily traders cannot make money unless he is in trade; This is a general prospect of the beginner day merchant. But this thought line has a serious error, and is important to learn to choose your trade in a systematic and emotional-free mind condition.

Of course, choosing high-quality trade is easier to say than done. At a variety of time, a very unproductive trade form regulates a very interesting pattern. Low probability trade such as the Iming of Medusa, they look great at first glance, but can cause serious losses if the systematic analysis of trade is not carried out.

How do you know the difference between high probability trade and low probability trade?

First and foremost, every day the merchant must make an assessment of whether the trade is with a trend or against the trend. While many popular courses about trade gazing policy trade retracements and identifying peaks and troughs in trading patterns, all of these are unhealthy trading methodologies and I know some successful day traders who hire them. Great traders are sir in taking what the market has to offer, and not try to create their own trading opportunities. The ability of beginner traders to effectively identify trend patterns is important skills because the best traders are traded especially with trends. In my view, less than 10% of your trade must handle trade.

Second, many beginner day traders and a large number of trading systems are very dependent on oscillators and indicators to choose potential trade. On the other hand, trading day traders pay attention to the actual price action while trading. Important principles such as support and resistance are the main drivers of determining whether trade has real potential. For example, taking short trade to known support is a recipe for losing trade. Obviously, a successful day trader must have the ability and experience to identify the support area and resistance which is known to avoid trading this dangerous trade zone. The most experienced traders can find support and resistance by glancing at the chart; These skills are studied through observing thousands of charts throughout the merchant’s career.

Of course, there are additional programs for most graphics platforms that can find support and resistance for a day trader who has not obtained the ability to identify their own support and resistance. For some additional programs this can be very effective and useful. In any case, every trade that will lead the trader before the time becomes a support or resistance that is known to often be the destined trade for failure and important to realize this trade is a very low probability. In short, price action is a place for real trading elections, and indicators and oscillators supply filtering information to strengthen the strength or weakness of the trade being considered.

This is one of the most difficult concepts to be studied in trading, as many as the trader’s day is looking for a magic oscillator or indicator that will revolutionize their trade results. I regret reporting it, until now, there are no magical oscillators or indicators like that. See to identify solid trade in any graphic price action, and then calculate the potential to be profitable by identifying where support and resistance will affect your trade performance. Many traders use pivots and other predictive indicators to calculate support and resistance. Over the years, I was in this camp. When I have grown older, I prefer to identify support and resistance because it develops on the graph, not through some artificial prediction facilities. This attitude is subjective, and the choice of each trader must be made.