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This blog is intended for mostly pure price action traders. Although the message itself can be applied to any trading style. Knowing that risk is always a factor and that there will always be a potential for a loss at some point, it is important to stay ahead of the game. To do so i will be touching upon the importance of risk-to-reward ratio and the importance of following your trading rules (Strategy) but at the same time being able to ignore your entry signal at times, due to risk.Let's begin. Simple Price Action Rules:Example: inside bar, Pin Bar comboStep 1: Draw your horizontal levels. Locate a Price Action set up on either the 1hr, 4hr, or Daily chart.-Identify the direction of the Trend, make a note.

Red Lines= Horizontal LevelsBlack lines = TrendRed Circles= Trade set upStep 2: What is the potential risk vs. reward ratio if any? Is there a potential to make a profit?-The reward needs to be at least 2 times the risk. (Very important, this is how you grow your balance)-If the reward is less than 2 times the risk, go back to step 1 and find a new set up.

Step 3: I would advise to set a pending order. A stop loss above or below the previous candle (depending on going short or long) and take profit level. -This way the trade doesn't toy with your emotions.Step 4: Check on the trade periodically.- If the trade has gone in your direction far enough, move the stop loss to break even. -Trail the stop loss

So there you have it. You do not need to enter every trade, its okay to miss trades and it will happen. If your gut feeling tells you not to enter, then do NOT enter. -be very patient -work on discipline-don't let your emotions get in the wayBe sure to draw and notice support and resistance levels, these levels are swing points.Whatever your strategy may be, make sure every time you enter a trade there is more profit potential than what you are about to risk. Hope this helps Eli