Like many new traders, I was enticed by the allure of quick profits. I chased every indicator, reacted impulsively to news, and followed social media hype. This approach led me to lose $10,000 in a matter of weeks.
What Changed Everything?
I stumbled upon a story on Medium titled "Bounce Back from Blow Up: A True Story of Recovering from Trading Failure" . The author shared how they lost 100 million rupiahs by making similar mistakes—overleveraging, ignoring risk management, and relying on unreliable signals. Their turning point was embracing price action trading, focusing on the actual movement of price rather than lagging indicators.
The Strategy That Turned It Around
By studying price action, I learned to identify key support and resistance levels and observe how price behaved around these areas. I began to recognize patterns of rejection, such as bullish engulfing candles at support or shooting stars at resistance. This approach allowed me to make more informed and confident trading decisions.
🔹 Bullish Rejection at Support
Price dumps into support → bullish engulfing candle forms → wick rejection confirms buyer strength → I buy the confirmation, not the fear.
🔹 Bearish Rejection at Resistance
Price rallies into resistance → rejection candle appears (e.g., shooting star) → bears step in → I short the failure, not the hype
The Results?
✅ Improved entry and exit points
✅ Enhanced risk management
✅ Reduced emotional trading
✅ A clearer understanding of market dynamics
Indicators can lag, and news can be misleading. But price action provides real-time insights into market sentiment.
Let the chart speak. Learn the rejection. Trade with precision.
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