Based on many request, I am writing this post.
Lets start with me. I am Mahesh, based out of Boston. I am trading for almost 11 years, but in reality, it could be 3- 4 years.
My experience is interesting one, let me share with you guys. Basically, I am from India. I have entered into the stock market trading in 2007 for the first time. It was bull market everywhere. I had started my trading in Jun, 2007 with INR 100k, with SR ( lines) traded heavily only on options. Do you know what? Made 25 times in 6 months. I was proud of myself, felt like Genius and thought will become super rich in few years. Never saw a drawdown in my trade, so I was very confident.
Forgot my trading plan, Risk Management, Money Management.
Exposed myself to huge contracts.
You all know very well, Man desires, God decides. Jan, 2008 - Financial market bubble, black days, My capital reduced to half in 15 days and remaining gone in next 2 months. Yeah, lesson learnt but it was costly :)
It took some time to digest and I was out of the market for few years.
https://www.babypips.com/learn/forex - Learnt my lesson here. Planned my strategy and started trading on Forex, Stocks and Crypto.
My style of trading is Price Action trading.
What is Price action trading?
The price action is a trading technique that allows a trader to read the market and make subjective trading decisions based on the recent and actual price movements, rather than relying solely on technical indicators
Look at the below chart: how price reacts on an SR
Next question is How to identify the support zone? I hope I am right.
* Identify a location at which Price came to the location and bounced/ retraced back.
* Number of times.
* The more the number, that is your SR.
In the above chart, Price came to the zone 4 times which made it as the strong resistance point. But buyers pushed it to the next level.
I use 1D and 4 hrs to draw the SR line.
Post your thoughts. We can talk about a Trading plan, Risk Management and Money Management in next topic.
Feedback noted. I will take care in future