The pin bar strategy is the main price action signal; the successful trader would know the benefits of pin bar strategy. The easy and simple structure of the pin bar strategy will lead you astray because just because it’s simple traders may mistake it easily. There are many instances where the traders mistake the good and bad pin bar strategy. There are few traders who trade every pin bar they come across they never analyze or consider to find it whether it is a good pin bar strategy. There are such mistakes which can be commonly seeing when trading. Let us have a clear study about it.
There are main 6 frequent mistakes in pin bar trading
Yes, there are five frequent mistakes found in the trading market because the traders are not aware enough to distinguish good pin bar strategy and bad pin bar strategy. Here are they;
- They do not learn thoroughly about the pin bar strategy to trade with the current market.
The first and foremost thing that the traders should learn is to trade pin bar to the current market. The market trend is important for the traders. You must analyze the market trend and decide whether it’s wise enough to trade pin bars, or you should not. You must look into pin bars with the trend; many traders do not do it, which is their number one mistake.
There are many different types of price action confirmation signals in the market. Most of the novice traders in the financial industry only learn about the pin bar formation to make a profit in the forex market. But if you truly want to master the pin bar trading strategy it’s better to learn the other price action candlestick pattern in the market
- They do not learn to trade pin bars with daily charts.
If you truly want to master the art of forex trading using the pin bar then it’s highly imperative that you learn how to use them on the daily chart. Always remember that the best price action setups are formed in the higher time frame. So if you trade the minute 5 or lower time than it’s very obvious that you will not be a profitable trader while using the pin bar.
The daily charts time is the best time to trade, it’s a fact of trading so if you are unable to trade pin bars with daily charts then you cannot do it any lower time. The simple fact is the lower time frame you search there are lower chances for the pin bars to signal. The mere reasons are such as price fluctuations and market noise.
When you trade pin bars with the daily charts you will be able to get the clear view of the market. It will have the past, present, and future effects show cast but if it is done in a lower time frame the scenario becomes less useful.
- Not ALL the trading pin bars can be traded. If you look at the professional traders of CornèrTrader than you will see that they trade only the high quality pin bars.
A pin bar to be good and accurate it should be at the right time, place, and the chart. The best pin bar can be seen an area of the chart. There many pin bars on a chart but not ALL the pin bars are equal and good. The best pin bar will provide the best sense for the traders.
If you find any pin bar in the smaller time frame during the high impact news release than its better to avoid it since lots of false signal is generated in the market prior to heavy impact news release.
- Take time to earn the profit, rise above the losses faced.
A good pin bar cannot be named as ‘bad’ just because your stop loss is close. There are fluctuations in the market, sometimes it can too often and meaningless. So if you do not get profits it does not mean that you will never earn it, in the long run, you might face huge profits. Trading is not the simple task but still, it’s worth trading for.
- Not knowing the whole picture about the pin bar strategy.
As a trader, it’s your duty to see the over price action scenario in the longer time frame. Most of the novice traders often ignore the long-term scenario of the market and thus incur losses. But before you trade the pin always make sure that you zoom in and out the chart and find the potential support and resistance level in the market.
- Trading the pin bar in false retracement.
Most of the professional traders always suggest the novice trader use the pin bar trading strategy in their demo trading account. If you really want to master the art of pin bar trading strategy then you should use the demo trading platform first since it will help you to understand the market retracement. Most of the novice traders often fail to trade the pin bar retracement and thus incur a huge financial loss.
Summary: You should learn about pin bar strategy is well and then you will be able to understand the better picture because there are many mistakes associated. Many traders assume that they are trading a pin bar setup so yes; you must educate yourself about it.Every trader must try to avoid the frequent mistakes occurred.