The ONLY Beginner's Guide To Trading Traders NEED To KNOW

let's talk about the Journey of the average Trader why Traders want to learn a trade it's simple Traders are lowered in by the idea of being free and the promise of riches and since the beginner Trader has no idea where to start or how to trade he naturally reverts to looking for tools to trade for him indicators and after realizing indicators don't work another brand new strategy is on the horizon and eventually frustration gets to the point where Trader decides trading is not for him and I started the same way me and my friends spend

countless hours and sleepless nights trying to figure out the best combinations of multiple indicators that will result being profitable and of course nothing worked but I was convinced that I just hadn't found the right combination of variables of the indicators I tried everything out of the sun you know maybe if I just tweak this thing can sell a bit more from 32 to 40. and if I just tweak the RSI from 65 to 45 maybe it will work and what if I add a little babes Fibonacci and Bollinger Bands they must be working since the

internet is full of it right no eventually I got rid of all the indicators and I just started looking how to trade without indicators how to trade pure price action what is price action in simple terms you just observe the pure price and analyze every single candle every single bar without any clutter to achieve consistent profitability Traders need to have an edge over the markets it's simple the more you're able to anticipate where the market is going the better chances you have to make more money Edge gives Traders a better art with the market and

allows traders to find setups with better success rate and when you analyze pure price action then when you wait for your Edge to form you can take advantage of the markets okay so is the proper Edge well you must understand how Market moves where the major moves form and you need to master major aspects of price action the very first thing I need to do is I need to make sure I read the price session correctly this is important I need to identify the bias is the market trending where is it trending these are the

questions I'm always asking myself or is it sideways if the market is trending upwards my main focus is to look for long setups mainly when the market is turning downwards my main focus is to look for short setups mainly if the market is working sideways well I can trade it both ways but I absolutely must have some level of understanding what is the structure of the market I don't have to be perfect you don't have to be perfect it's important to remember that but you have to be close if I want to follow price action

properly and if I want to follow price session rules probably so this is the first part of your Edge second you need to be aware of the fact that Major Market moves don't occur randomly they happen in important places on the chart at key entry points so if I want to predict where the major moves may form I need to find the proper key entry point which is either trendline support resistance key level or the exponential moving average I only use one indicator as a supportive indicator only and this is the 21 bar exponential moving

average it only helps me with my analysis of pure price session I don't trade moving average crossovers none of that stuff so now that I know what's the main bias and I know where the key and Chip Point may be I cannot just take any setup I like in price action some setups have high likelihood of succeeding than others if all the rules a line my goal is to take high probability setup only at key entry point under the right Market context and the high priority setup is a variation of the tool like a pullback

second entry felt second entry lower high high low confirmation setup for breakout or double track I talked about these setups more in my videos in the beginner playlist if all first three factors now align then you need to make sure the behavior of the setup is correct meaning you have a good signal bar confirming your setup and confirming your momentum that's important because sometimes the single bar can form a very ugly and this is designed for the market that the other side stepped in and you don't really want to be taking the setup because the

single bar is not confirming your initial analysis I also need to make sure the setup is not congested because the congestion is indecision in the market and reliability of the setup decreases during price congestion that's it you just decide if rules are being met and either take the setup or don't let's now take a look at the price chart and how would you use the ad Edge that you've learned the first thing I need to do I need to ask myself what is the bias and right now I can see that the bias is drainage

isn't it because there is no clear uptrend or downtrend well I can see we have option working down to working but we have move up and move down and basically Market didn't change much and you can see that I'm already drawing these channels and this is important because the price action is always following some pattern these candles they're never alone and naked on the chart there's always a pattern working and these channels are key entry points so I always follow the price session and want to file the price session rule because after there's a break

of a channel you don't reverse the market you expect new extreme and then after new extremist form the market May reverse with your downtrend we have a break new low and since it's a train range I'm going to identify the key levels okay so more information from the market is being presented to me and this is what I do I just follow the price section and I just read Candle by candle bar by bar trying to make sense what the market is doing and this is what you need to do this is what you need

to train your brain to be focusing on so right now I can see a very strong bullish Spike very strong Spike multiple consecutive bullish bars first thing I'm going to do I'm going to find a channel find a key entry point so I know where the market is going because chances I high the at this Market this option will not reverse it will attempt to get a new extreme if we get a break okay and notice what we have we have a little break outside this Channel and now the question is can I go long

here because I expect new extreme I expect new high for this reason I need to make sure I'm at the key entry point which I am I'm at the exponential moving average which is the supportive indicator and now I need to properly count the entry because remember if I want to take high probability setup it needs to be a variation would do like a pullback or some other high probability setup I cannot just randomly buy or sell just first entry or fourth entry I need to count the proper entry find a two-legged pullback because it

comes down to human psychology if Traders try something once and it fails they usually try it again and it's just how the price action is depicted throughout the years so since I'm counting for Longs I'm gonna count from the latest high so this is the highest high you can see bars working lower and if you get a break above the bar this will trigger the first entry so we have new high first century long it failed and we have second inch long and by the way I have a video about how to count entries in

my beginner a playlist so this is a second entry long is this a high probability setup it is is the single bar good it's great police signal bar great tail at the bottom all the cells got trapped and at the close of the bar everybody started buying a closed above EMA and notice I also draw the micro downtrends because this whole price section works there are also channels inside of the main channel so the downtrend has a break new low which is indicating to me that I can now think about buying again so this is

a second entry long everything is aligning structure is train range we're heading from the bottom probably to the Top This bullish Trend needs to high so this is the shortened bias downtrend laid out it is a high quality setup I can go long and it created a quick scalp your stop loss goes one thick below single bar so you were never hit and notice what we have next we have a third second entry short because not only I'm counting for Longs remember I'm counting for felt second attempts but I'm looking for people to get trapped

and since the structure is bullish because this trend is the shortened pattern needs to get him high I can count for second entry short because the shorts are going to get trapped going short on the wrong side of the market since this option is to get new high so from this low I'm going to reset the count as a first entry short pull back second entry short single bar is a little bit neutral you can wait but during failures you can take aggressive single bar now notice what we have another new high I'm going to

reset the count at first entry long second and too long horrible single bar I cannot take it I have new high of the uptrend but notice what's happening Market keeps pushing higher brand new series of high highs and high lows and the EMA Keys holding every single time so this is a pattern in price session that is called a spike and a channel pattern because we spiked up we consolidate it we have a congestion right at the EMA and this is typical house Spike and the channel will a lot of times perform so this is

a bullish structure still in the market there are no signs of the bearish pressure all the major buys right now in this market still is in the hands of bull so I'm still only looking for setups to go long okay and this is what I do I just file the price session bar by bar looking for patterns working with the EMA accounting for entries so this is the key entry point the main key entry point Spike and a channel pattern and I have new high for essential on second into long great bullish bar I'm gonna

put my stop loss below and it failed and it's okay I'm gonna bother by this nothing is 100 in price action no trading strategy is 100 if you want Perfection you have to choose different job because you will never achieve 100 consistency it doesn't work it doesn't happen it is impossible because these markets they are controlled by the institutions you can't move the market your retail Trader only thing you do as a retail Trader is you follow the footprints of the big players you follow the institutions and the goal is just to take advantage take

a little piece of the moves they are creating the central banks the bigger hedge funds the institutions the other ones were moving the price they're the ones who are pushing the market in the direction they want to push it you can't push it average retail Trader cannot move the market you just have to follow the price session follow the footprints and take advantage of the market moves so the second Angel unfailed no problem that's a part of my plan I have a double trap which is a high problem they set up a little more advanced

but at two key entry points at the EMA and at the trend line so this is confirming to me that buyers are still buying a two key entry points great bullish bar I can go long and you can see you can make it all back quick easy scalp now we have a break of a spike on a channel which means I expect New Height to be formed okay because this channel is nicely confirmed and after break we expect most likely new high we can reverse anything can happen but I don't try to predict the future

I just follow the price session and I trade the market I get not the market I want so we can see that we have smaller congestion this is what congestion is it is a series of overlapping bars stacked right next to each other without any killer Direction and generally you don't want to be trading congestion because there's a lot of whip solving back and forth back and forth and you want to wait for prices to break out of this congestion okay prices are pushing back above the EMA which is confirming our analysis that this option

is going to get new extreme gray bullish bar and this is a high low confirmation setup and Market created new high now this is what we had strong bearish reversal down followed by a instant bullish push back above EMA okay so we can see that this is what sellers did and they didn't even manage to go all the way to the support they bounce in the middle of the train range and we are back above EMA again and now we have new low first attempt to sell pull back second attempt to self-felt with a very

strong bullish bar so right now this is giving me information that the Bulls are still stronger in this market and I don't be thinking about selling above EMA in fact we can see okay prices keep pushing above EMA in a brand new series of high highs high lows and EMA keeps holding again so I need to once again count for long entries notice we have a new high for essential long second inch long horrible bearish bar fire from EMA and we have double trap can I take a double trap even though it survived I cannot

why because I have downtrend in play if I want to go long the downtrend the bearish correction needs to play out that's the safest way how you're gonna make sure that your odds are increasing that the setup may work I want to see the Bears deplete first with the brake attend to Green you low and then I have high low confirmation setup EMA keeps holding and notice your stop loss was never hit once again one thick below the single bar very strong bullish push I have a brand new key entry point forming I have a

new high for essential long second inch long a market kept pushing high of course here I would arguably drew a Downton or it could have been a little bit tighter at this point the bullish move is quite strong this trade can be skipped or it is more aggressive but this is what you do if you want to find the proper places where to enter on the chart because you cannot move the market you just follow the institutions you follow their footprint and every single bar is telling you something the brand new higher high and brand

new higher low is giving you information where the market is going you're looking for key entry points you're not being emotional you're being patient and you just wait for Market to form as your Edge is dictating the only indicator I have on my chart is a 21 bar exploding to moving average the price session reflects human behavior it reflects human ingredient fear I don't need any volume profile order flow stochastic macd the price session alone can tell me everything I need to know if I just analyze it watch where the market is going and analyze

every single candle it's not fancy as bunch of fancy indicators promising your Holy Grail but you should have at least some level of understanding what you're looking at and when the market is going it only makes sense to be aware and understand what you're trading what is the instrument doing and where the moves will most likely form that doesn't mean that you cannot use additional supportive indicators like we have on the right to help you while analyzing the price session of course any Trader can use and Implement different ways how to analyze the price session

but you should have at least some sort of understanding what the price action is doing and where the price session is heading rules of price session work in all markets when I put different charts in front of you you're not going to be able to tell the difference between chart from today and chart from 10 years ago human nature doesn't change price action is a reflection of human behavior and it is in our genes we have three different charts but we can see there are all three different instruments and different time frames we have USD

JPY 5 minute we have the SMP es or mini chart and we even have Procter Gamble the weekly chart and you can see there are similarities to all these charts because price session is still following the same rules in all markets and in all time frames you're going to apply the same logic of price action when you're trading every single different instrument your approach to the market should always be the same you should always look to mark your chart up you should always look for key entry points and for a high probability setup it should

be a routine for you to be consistently marking your charts and looking for the proper places to enter we can see that we have first two swings that allow us to identify a possible key entry point and third swing confirmed it so the structure of this Market is bullish and I need to follow my plan I count from the each new high because I'm counting for high quality setup I have a second entry loan but is far away from EMA it is not at the key entry point which means according to rules I cannot really

take it even though it work here next time it may not work we have double tap count reset and notice we have the two-legate pullback confirming the trend line downtrend played out and we have second entry long at the key entry point with a great strong bullish signal bar so this is where I'm going to decide if I want to enter how much I'm going to risk what is my target profit where I'm going to put my stop loss my stop loss goes always one thing below the single bar and why am I using stop

loss because I don't want to argue with the market if my analysis is wrong I want to get out as quickly as I can take the minimal hit and look to re-enter on the next one for this reason I'm just gonna bet that my analysis is correct in case Market goes and stops me out then Market is probably reversing and I analyze the wrong so if it's all I get pulled back strong push above EMA and high low confirmation setup of two key entry points and you can see the price action is indicating to you

that the market is losing steam is losing momentum prices are no longer making it all the way to the trend channel line but you can see they are barely making it to the midline so there's a loss of momentum every single detail is being told to you by analyzing pure price session we have a break of the channel which means we expect new extreme new high for essential on pullback second inch along two-legged pullback and the downtrend played out with the brake and new extreme so you can see the same rules we've used earlier can

be applied on the USD JPY five minute chart and here you can see the es one minute chart we still have first couple of swings at the bottom allowing us to identify the channel the channel is getting confirmed here channel is getting come from here so I have my bias I have my key entry point and I'm just counting for high probability setup we have another two-legger pullback for essential long second inch long down Jump by that with the break new low add the key and always look for opportunity to buy when the structure is

bullish wait for a setup that follows your Edge once I see Market working hard like this I'm not chasing the market I don't care that the market is going to have Market can go higher 50 20 points 50 points 100 points I don't care I can only follow my plan and enter while prices will pull back and will make their way to the key entry point another two-legged pullback another second inch long at the key entry point and another second and too long at the key entry point followed by a break high low confirmation setup

and new extreme of the market was formed and I'm a scalper so I'm mainly interested in small price action moves this works in all time frames but I like to be in and out of the trade fairly quickly and I like the idea of being able to predict a very small move in price action you should always start by identifying the bias and identifying the key entry point that should be your habit that you need to learn it should be a routine you're not placing a trade unless you successfully identify what the bias is and

where is the possible key entry point as you watch price session develop long enough you will develop a sense a gut feeling that will help you to navigate through prices easily and you'll be able to predict where the prices are going to go on a more reliable consistent basis but it takes time to get used to it you need to train your eyes to see the price action develop to see the candles print and Market moving you should apply the same Market approach to every single Market because the price chart is a map of interaction

between buyers and sellers the first thing I'm going to ask is what is the bias we clearly see that it is a bullish Market structure which means I'm only looking for high quality setups to go long I have my key entry point and at this point on I'm accounting for second entries because I want to know when the high product is set up which is the two-legger pullback may appear the highest high to like a pullback and a second entry long form and two key entry point a market continue working higher you can see that

there is a reason to price women and all these big moves happen at certain level and that is because in every single Market there is a push phase of the trend and correction phase the buyers have to take profits and sellers the beginner Traders especially are picking tabs trying to reverse the market but you never want to trade against the main Trend you always follow the trend and the best opportunity is to wait for prices to deplete the best momentum and then jump on Longs again so this is where the correction phase is ending at

the very key entry point and a high probability setup appeared another second entry along with the breaking low of the downtrend followed by a high low but the horrible signal bar Market continues working higher and another two-legged pullback at the important key entry point a market continues working higher there is actually even a high low so you can see we went over three different price charts four in total and you can see there's still the same behavior to prices we have larger two-legger pullback market likes to move in pairs of tools and according to price

session rules you're not expecting reversal just because you see this very sell-off that doesn't mean you expect from Market to suddenly reverse it can anything can happen but you're more expecting since it resembles to like a pullback still to expect new high especially if you have strong push above EMA which is confirmation of the Bush momentum then you know by this strong push-up of EMA multiple consecutive bullish bars the ladder bars are buying and the new high is most likely going to be reached followed by a high priority setup new low first attempt to sell

pull back second attempt to sell that failed when you're trading you want to be patient you don't want to be over trading you don't be consistently looking for setups on every single candle instead you want to lay back let price action to develop in front of you and once you see price action approaching your key entry point this is where you start paying more attention because you've analyzed the context correctly you got your key entry point confirmed and now you see the setups forming this is where you start paying more attention if the single bar

is good if the setup is congested or not think about it as your Predator just hiding in the bushes waiting for prey you're not running around consistently looking for every single setup and over trading because if you keep over trading if you keep mixing the rules if you're antsy to take a setup if you're frustrated you will never really progress you will be stagnating on the same place because you will never teach your brain to look for the same pattern to follow the price action rules to follow your trading plan you will never reinforce the

good trading habits and trading skills and overall mental fortitude you cannot allow your emotions to get ahead of yourself you can't trade impulsively you cannot Rush trades you cannot overreact trading should be boring it should be mundane it should be a routine you really shouldn't be that excited when you have a winner and you shouldn't be upset when you have a losing trade this is all part of trading your goal is just basically try to follow the rules as best as you can and just bet that your statistical Edge in the long run eventually will

be good trading is a skill like anything else and it requires practice you need to study and practice Traders are convinced that studying the charts after the fact that has no benefits but I guarantee you that almost every single profitable Trader you know study their charts after the fact they're back tested and think about this every single profession in the world basically starts with practice actors first use simulations and fake accounts before they start performing operations on live patients Pilots first get into simulators before flying real plane if you're a boxer you don't just jump

straight into ring against another professional use par you train with heavy back Etc and basically trading is the same thing how do you practice well you have to take your chart and print it at the end of each day mark it out with setups look for patterns think about how you would have traded it would you could have done better how you would have drawn your key levels all these things you want to go through because with time you will start seeing more similarities in price session and quicker you will be to react studying your

charts after the fact will help you speed the learning curve and you will be able to understand price action quicker you need to follow your trading plan training plan is important because most of the training is manual and we need to constrain ourselves from doing something we shouldn't do first you need to make sure you're comfortable make sure you're in a positive comfortable environment find what makes you relax and follow this routine but it is making a tea or coffee I make my tea every single day before every single training session at almost the exact

same time it's basically become my routine the goal is to leave all the distractions outside because Traders especially scalpers they need to be in the zone as a scalper you need to be ready to observe every tick and to catch any little price movement sometimes you look away for 2 seconds and if Market is fast you miss a setup and you cannot afford to be distracted uncomfortable and frustrated all details in price action are important and that's why sometimes when I was starting out I skipped this very first step I came in late I set

it from the screen and I quickly opened up the charts and I rushed my analysis why because I was too eager to trade I couldn't afford to miss one day and this often times led to me not being fully objective and not wanting to miss a setup and drawing channels too wide while ignoring a break in a new extreme resulting into a losing trade at this point I would never allow myself to do this again I was burned so many times if I'm running late no matter what I will not trade the first couple of

minutes after opening my chart until I cool off and I'm comfortable set your goals and expectations now this is different whether you are a very beginner or already advanced Trader who is trading let's say micros yes or planning to transition live because beginners can afford to take more trades in order to learn about the price session and discover their Tendencies however even beginner Trader should plant seeds of the proper mindset and approach early because if you treat train like a job from the very beginning transitioning life is going to be much easier set your goals

how many trades per day do I plan to take when do I take breaks if I don't find set up early when is my cutoff Point am I okay with not making any money today if I don't get a good setup all these things you need to be prepared because the last thing you want to do is you want to chase this set up at the last minute hoping you will make it up you have to have realistic expectations with time you will discover which routine fits you the most maybe you're tired for the day

and you don't feel like trading Market is not good Arena to bring these feelings in when you have issues in real life perhaps just say to yourself I'm not in the right state of mind and I'm not going to risk my money and I will sit here and watch it just to get experience I will not trade but just watch the market just to get experience and after an hour you may discover you feel much better and you are in sync with the market I used to trick my mind in a similar way when I

didn't want to go to the gym I was feeling tired didn't feel like working out so I just said to myself all right I'm just gonna go to the gym do some light exercises and go home I was trying to trick myself and lie to myself like that but when I got there I saw the people training I saw the atmosphere I suddenly felt pump and I got excited to actually do the heavy workout same thing with trading maybe you're just going to watch for a few hours and suddenly you will realize you're ready to

take trades the goal is to recognize your state of mind and to be fully objective next proceed with the pre-market analysis before trading make sure you know what is the pattern and what is the bias ask yourself do I actually understand what's going on and sometimes you don't if you're fully objective you don't that happens a lot bias is not clear there are multiple patterns conflicting so just wait for the open for the market open and just follow the price action after the open it's important to be objective you cannot relay try to gamble or

try to rush things it's very normal that there are multiple patterns working together you have conflicting beliefs so just wait it put the market open and eventually after the market open it will pick up and the analysis is much easier also have a predetermined plan how to deal with frustration after some time you will become familiar with yourself and you will recognize patterns when you self-sabotage it is Paramount for you to stay objective and true to yourself you cannot let your need to make money for this day to force you into doing something you shouldn't

do after losing trade you may get very upset if that happens you need to take a break get up and walk away for five minutes and you will be amazed how clear the chart looks after such a small break it's really astonishing because those negative emotions are building up and you need to get out you need to take a break and once you come back you clear your head and you're able to follow the rules again much better and with ease and sometimes maybe too overly attached to wrong bias despite the market showing you different

clues that the bias is changing this is also happening a lot you really don't want to admit that you've been analyzing a little bit wrong the market is giving you information that the bias may not be as you first analyze you need to be objective and for this reason small break here and there is absolutely crucial because that can kind of help you snap back out of the cycle and be more objective good luck with your Trading