Steve Burns Profile picture
Feb 14 11 tweets 2 min read
10 Price Action Strategy Trading Tips:

A thread 🧵👇
Higher highs & higher lows define the market is in an uptrend. Lower highs and lower lows define the market is in a downtrend. Trading inside a defined price range a sideways market. Defining what type of market you are in helps you go in the direction of least resistance.
Where price is in relation to the moving average in its time frame can show the current trend.
An entry is placed due to price reaching a predetermined level that creates a signal. A trading signal must have an edge, it must be based on a historical pattern then managed so it creates bigger wins than losses.
A stop loss is a price level that should not be reached if the trade is going to work out. This is the price where you admit you’re wrong and take a small loss before it becomes a big loss as the odds shift against you. A stop loss along with position sizing sets the trade risk.
A profit target is the best case scenario of where price could trend until the odds of further profits shift against you. Your profit target sets the reward for your trade.
The MACD can quantify if the market is showing momentum in one direction based on the direction of the signal line crossover.
The RSI can signal if a market has moved too far too fast in either direction. Long positions risk/reward ratio can be diminished at the 70 RSI and a short position can be close to reversing back higher at a 30 RSI.
When the price range expands by twice as much as it has been trading at, that is a sign of volatility and increased risk in both directions. It is usually a good signal to trade smaller.
A breakout of a previous trading range usually signals the odds of price continuing in that direction unless the breakout fails and returns inside the previous range.
A market usually continues to move in the direction of a price gap unless the gap begins to be filled.

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More from @SJosephBurns

Feb 16
Ten Stop Loss Tips

A stop loss is a risk management tool that keeps your losing trades small. The point of a stop loss is defensive and to eliminate big losses from your trading. 

Here are ten tips for thinking about when placing a stop loss on a trade:

A thread🧵👇
Your stop loss should be a part of your trading plan on entry not figured out later.
The best time to set a stop loss is before you get emotionally wrapped up in the outcome of a losing trade.
Read 11 tweets
Feb 15
10 of the Worlds Most Powerful Trading Rules:

A thread🧵👇
1. A winning trading system must either be designed to have a large winning percentage of trades with small losses or big wins and small losses.
2. Your trading system must be built on quantifiable facts not opinions.
Read 11 tweets
Feb 12
Top 10 Tips To Give Yourself An Edge Trading:

A Thread 🧵 👇
Research historical chart patterns to understand what is possible in the market and how markets change from uptrends to downtrends, and from volatile to range bound. Use this insight to structure profitable trading systems using price action signals.
Backtest your trading signals to see if they had an edge in the past.
Read 11 tweets
Feb 11
7 Steps on the Path to Success:

A thread 🧵 👇
Don’t do things half-way. Only do things that you are passionate about. If you can’t do something with all of your heart, then continue to look for your true calling. Then do it to the best of your ability.
Know where you are going. If you don’t know where you are going, your decisions & destinations will be a result of your environment. Goals take time, perseverance, & effort. Most people never accomplish anything because they quit too early, don’t work hard enough, & don’t finish.
Read 8 tweets
Feb 10
7 Habits of Highly Profitable Traders:

A thread 🧵👇
Traders must have the perseverance to stick to trading until they are successful. Some of the best traders are ones that had the strength to push through the pain, learn from their mistakes, & keep at it until they made it. All profitable traders had to survive the learning curve
Great traders cut losing trades short. The ability to accept that you are wrong and put your ego aside is the key to professional success. Setting stops is one of the top skills for a trader to learn. They need to keep losses small but give room for a profitable trade to play out
Read 8 tweets
Feb 9
7 Reasons to Never Give Up Trading:

A Thread 🧵👇
Trading will educate you about yourself. You will learn your strengths and weaknesses.
Learning to trade well will make you a better person. Good traders do well managing their ego, fear, and greed. Also risk management will help in other areas of your life.
Read 8 tweets

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