Hey hey: what's up my friends, so in today's training i want to share with you the top three price action trading mistakes right that almost all new traders make. So, let's get started number one you blindly buy support or blindly sell resistance right. Your top process is oh price. He said support right now, time to buy or the price is at resistance right now time to sell now, what's wrong with that? Well, let me explain: that's a good question what's wrong with that.

So if you look at this chart over here, you can see that this market has a tested, support right, a number of times i'll just draw this area of support out test it once twice i tested three times and uh i'll consider this yeah. This is the fourth time, so you can see that you know many traders will look at this chart and think you know. Oh reyna, look at how strong this area of support is right, tested four times right. This support is about to you, know, hold and the market's gon na rarely hire.

But you know hold your horses right, because if you look at this right, things are not as simple as you have just described, because if you understand price action right, you will realize that this is more of a sign of weakness. Why? Because if you look at this price section, you notice the market making a series of lower highs into support right. A series of lower high, lower high, lower high lower high and another lower high in the support each time right. The buyers try to push the price up higher.

They are met with selling pressure to contain these lower prices. So you can see over here. Okay, every time the the buyers try to push the price up higher the first time here they push this much second time about this much third time about this much fourth time about here before you finally collapse and break down. So this right to you should be a red flag, a warning signal that this market has difficulty breaking out hi.

This is a sign of weakness, so long story short when you notice a series of lower highs into support. This is a sign of weakness. Okay, so understand this, and if you want to think about an analogy right, it's very simple. Imagine right now in your hands right: it's a large sledge hammer right, a kind that way you're hitting someone in the head right there, just conquers and no that's it gone pew.

So imagine you have this large sledgehammer and there's a wooden door in front of you. You take this sledgehammer and you smash against the door. Let me ask you right: after doing it, you know five times ten times. What do you think will happen to the door? Chances are the door will break and it's the same concept.

As you know, the price testing support multiple times within a short period of time. Right, the more time support is being tested within a short period of time chances are it's gon na break okay, so this concept is the inverse right for resistance. Let me just share with you, so if you look at this so prior to the market breaking out higher and if you were to sell a resistance, you'll get stopped up again right. How could you have you know, get this heads up that this market is about to break out higher pardon this horrible looking line right, so you can see again price tested resistance once twice and almost a third time over here, and the clue here should be seeing A series of higher lows higher low higher low higher low into resistance.

This is a sign of strength. This is a sign that tell it tells you that that buyers are willing to buy in these higher prices, so don't just blindly sell, because the prices have resistance. Don't blindly buy because the prices have support, look at how the price right approach these areas on your chart. This will give you clues right to whether it's about to hold or fail okay, so this is uh.

The first mistake that many new traders make blindly buy support or sell resistance and, oh by the way, if you're, enjoying this training so far smash the thumbs up button. If you don't, then hit the subscribe button cool number two chasing the market - oh man, i am guilty so guilty of this right in my own early years of trading. So if you look at this chart, okay over here, okay, look at how bullish this market is right. The old rain will be thinking, hey, rainer, look at how bullish this chart is man.

It's time to buy right, the price is hitting up higher. The candles are big: it's bullish. It will go up higher right over the next few days, so i buy and then you know, market reverse. I get stopped out.

So, what's the lesson here, the lesson here is very simple: when you notice such bullish price action in the market when the market goes parabolic, when the candles look nice, big, bold and green, when you feel that is the right time to buy pause right, because it's Usually the wrong time to buy, so let me explain why, so when you see such bullish price action right, the first issue that you will face is that, where do you set your stop-loss? Where is a logical place to set your stop-loss? So if you're a price action trader - which i assume you are since you're watching this video, then you will want to set your stop-loss, let's say below a swing low, below support, now ask yourself: where is the nearest price structure where you can set yourself get set? Your stop loss from the looks of things right, i would say at least here right. This is where previous resistance that could become support somewhere here and, of course, you're not going to set it smack on this level. You give it some buffer, maybe somewhere here, let's say 20 - to make things simple. So if you buy at this heist over here, let's say this is thirty one dollars or the next candle open.

Your stop loss is twenty dollars. Your stop loss is in essence, right, eleven dollars. Okay, so that's a pretty done huge, stop loss. If you ask me, and and what most traders will do right - let's be honest - is that you're not going to set your stop loss here right, you'll probably set your stop-loss all right.

Let me guess, below this previous day low right, maybe somewhere here or somewhere here, and the problem right with setting such a tight, stop-loss or rather setting a stop-loss debt doesn't make sense. Is that when the market makes a pullback okay and let's say it pulls back into previous resistance? That could become support and then reverse up higher you're gon na get stopped out, and the worst thing is that you got stopped out of your trade, not because you're trading against the trend you got stopped out of the trade, because your timing is wrong. You're chasing the market, you're, not trading from an area of value, and that's why you got ta, stop down and you're gon na you know just feel uh. Okay, so don't chase the market when the market looks very bullish or if it looks very bearish, it's usually a sign right that you should wait for the market to make a pullback to retrace to an area of value.

Okay. So let me give you an example: euro dollar, so we look at this right this time round market is in the downtrend. This is the area of value right price testing, the 200 me number of times. Okay, let me see i can zoom out here.

Okay, so again, right if you notice that for euro dollar again, many traders will look at this chart - and you know look at this. How bearish this is? Oh, rainer! Look how bearish this market is price broke right below this lows over here. Right kendall is big. Bearish and bad badass and they go short and again, the problem with you know chasing the market is that when the reversal comes, or rather when the pullback comes right, there's a good chance that you'll likely get stopped out of your trade, so don't chase the markets.

Trade from an area of value right, this right gives you a much more favorable risk to reward. This gives you a logical place to set your stop loss instead of you know randomly setting it here here or here, and when the pullback comes like this boom. It's right, your stop loss is just booms gone and the last and final mistake i want to share with you. Is this one trick pony now: there's nothing wrong being a one-trick pony right, especially if you're new to price action trading.

You need to start somewhere, but as you progress as a trader, you know six months one year into your trading career, you need to develop right more than just uh one trick when you trade the markets, so many traders right they will just you know trade support Resistance, after all, that's probably the first thing that they learn right when they get uh when they learn trading, you know, buy support, sell resistance and even then it's not as simple as blindly buying support and selling resistance. That's what i've shared earlier, but that's usually what people you know start off with and nothing wrong with that right. But if you were to only be a one-trick pony, like you know, buying support selling resistance, then you miss. You know trading opportunities like this many traders you look at this chart over here.

Prices said uh. Let's say over here come to resistance. They sell right price breaks out. They get stopped out when it breaks above this heist, and you wonder why? Right, that's because again, market right has formed a build up at this area of resistance.

Let me just point out to you right: if you, this is your area of resistance. This is the build up notice how the price consolidate right at resistance and a 20 me right, showing uh or rather supporting up this price higher. So this is usually a sign of strength similar to the higher lows or into resistance that i've explained earlier and when you notice this price action right, you want to be buying the breakout and not selling the resistance. So this is again going back to the first mistake that i pointed out earlier.

You don't want to just blindly sell resistance, look right at the price action before you make a decision. Okay, so in this case right again right, there is a breakout trading opportunity. If you know how to spot it another one over here, okay, don't be a one trick pony lvgo. So if you look at this market, this is stock.

Chart right again same thing. Over here price broke out of resistance. Look at how straight that line is rainer. Okay: this is a very straight line, but anyway price broke out of resistance.

Okay, and it forms a build up over here so to a a newbie price action trader. They look to buy support, sell resistance, but at this point right, let me just bring it up to you here at this point right, the price is not at the price is not it's support for you to buy or no is it it's resistance for you to Sell but yes, there is trading opportunities right buying the breakout of this high because there is a valid build up form over here to to look for a buying opportunity. So the key point here is, you know, as a price section trader, don't be a one-trick pony. You can trade reversal, you can trade pull back, you can trade breaker, you can trade support resistance.

There are numerous way right to. You know uh to uh to trade, the markets as a price action trader, especially depending on you know how the market, uh or depending on what the market structure is and really if you want to learn more about price action trading right - and you know you want To master this trading methodology, then you know i got this book over here called uh price action trading secrets. Okay, so this is a new book that i've written about 140 pages. You can see over here.

I'll just show you some a glimpse of it right over. Here so it's a color trading book right uh. Basically i share everything. I know about price action trading in this book right we talk about.

You know our price action trading strategies to profit in bull and borrower markets bulletin, bear markets, uh, reversal trading, uh, breakout trading uh how to fine tune and improve your trading results risk management. So you never blow up another trading account and much much more and if you're interested in getting a copy right, i'll put the link somewhere below this video, you can get your hands on it right. Uh just cover the shipping and the printing course there's no markup. There's no distribution fee or whatsoever right, so this book uh it will be 1290 for those of you in us right, including the shipping fee, the printing fee and for international those outside the us.

It's 18.90 and again that includes the shipping fee and the printing fee, and that's all you have to pay for this uh this copy of this book. So if you're interested i'll put the link below and with that said, i wish you good luck and good trading. I will talk to you soon.