Many folks believe good chart-reading automatically leads to profitable trading. Unfortunately, this isn't true. While technical analysis and trading are interrelated skills, chart-reading requires no capital or emotional commitment. In contrast, real-life trading places both of these elements at risk in an unforgiving environment.
I publish hundreds of trade setups each month. But none of these ideas will put money in your pocket without good timing. It's a critical error to enter a trade just because it has a pretty chart. The opportunity comes only when you can discover and capitalize on the setup's timing signals.
Careful entry bridges the gap between the setup and the trade. This is the door through which you take on monetary and emotional risk. There are many ways to time the market, but three strategies work for most swing trades. First, enter a breakout or breakdown after it's under way. Second, wait for a pullback and enter near support/resistance. Third, buy or sell within a narrow range before the move begins.
Which is the best entry strategy for your next trade? Unfortunately, the right answer is never the same twice. Don't try to render entry rules into simple repetitive tasks. In truth, you need to plan each trade within the context of the current market environment, reward-to-risk ratio and chosen holding period. This extra effort is a necessity, not a luxury.
Let's examine these three entry strategies. Over time you'll learn how to pick the best one for the trade you're ready to make. Keep in mind that several different strategies might work with the same setup. The right choice could have more to do with intestinal fortitude than market timing.
I publish hundreds of trade setups each month. But none of these ideas will put money in your pocket without good timing. It's a critical error to enter a trade just because it has a pretty chart. The opportunity comes only when you can discover and capitalize on the setup's timing signals.
Careful entry bridges the gap between the setup and the trade. This is the door through which you take on monetary and emotional risk. There are many ways to time the market, but three strategies work for most swing trades. First, enter a breakout or breakdown after it's under way. Second, wait for a pullback and enter near support/resistance. Third, buy or sell within a narrow range before the move begins.
Which is the best entry strategy for your next trade? Unfortunately, the right answer is never the same twice. Don't try to render entry rules into simple repetitive tasks. In truth, you need to plan each trade within the context of the current market environment, reward-to-risk ratio and chosen holding period. This extra effort is a necessity, not a luxury.
Let's examine these three entry strategies. Over time you'll learn how to pick the best one for the trade you're ready to make. Keep in mind that several different strategies might work with the same setup. The right choice could have more to do with intestinal fortitude than market timing.
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