Everyone is working very hard to ensure a decent lifestyle. People work hard all day long so that they can support their loved ones. However, even after doing all that hard work, there is no assurance you will be able to support your family. Due to this, many people prefer to become a businessman. Starting a business from scratch is not that easy. You need to have a huge amount of capital to make things happen in the real market. For this reason, the majority of people are still sticking to a traditional day job. Not anymore. Many people in Singapore have already changed their life just by using the high leverage Forex trading account. If you can trade the market with proper caution, you won’t have to worry about your financial condition.
So how do we trade the market like a pro trader? The simple answer is a price action trading strategy. In today’s article, we will give you a clear guideline so that you can at least trade the bullish morning star pattern with a high level of accuracy.
What is bullish morning star pattern?
A bullish morning star pattern is based on three basic candlestick pattern. The first candle is part of the bearish trend. The second candlestick is the bullish pin bar or doji which reflects the bulls are trying to take control of this market. Many aggressive traders execute the trade after seeing the bullish price action signal. The pro traders wait for the third candlestick which a strong bullish candle. This is just the basic formations of the bullish morning star pattern.
Execution of the trade
Execution of the trade is fairly easy with the bullish price action confirmation signal. You need to find the key support level at a higher time frame. Once you find the key support level, you need to wait for the bullish morning star pattern to form. The best way is to use the Saxo demo trading account at the learning stage. Once the trade condition is filled, execute the trade with proper stop loss.
Though the system is extremely profitable to make sure you are not risking more than 2% of your account balance in any trade. Making money consistently is all about following the proper money management technique. If you fail to reduce the risk exposure, you are going to blow up the trading account. Demo trade the market for the first few months so that you understand how this strategy works. Forget about aggressive trading techniques and you will be able to make a profit in the long run.
Dealing with the losing trades
Trading the market with the bullish morning star pattern is an extremely profitable trading strategy. But this doesn’t mean you will never lose the trade. So how do you deal with the losing orders? It is very simple. You have to trade the market with high-risk reward trade setups. Never try to trade this market with a 1:1 risk reward ratio as it will make things extremely complex. The elite class trader never executes the trade unless they have 1:3+ risk-reward ratio. Train your mind so that you can easily embrace the losing orders without having any stress. Trading is all about managing your losing orders. If you can protect your trading capital, you will never have to worry about the outcome of any trade.
Price action trading strategy is one of the most powerful trading systems in the world. In this article, you have learned to trade the bullish morning star pattern. Once you master this technique, learn more about price action trading strategy so that you can also trade the bearish trend. As a fulltime trader, always try to trade along with the market trend. If you feel confused about the market condition, take a short break but never trade without having any clear ideas.