Hi everyone,
I wanted to share a few tips about trade entry triggers with you. Regardless of whether you decide to go long or short, execution of a trade is what will make most of the money. Properly timing entries will keep you away from most of the bad trades that lose money.
So, after you have done your analysis on whatever TF you want to trade, and finally decided that you want to go long, here are a few checkpoints that will increase success probability.
- Enter on break of previous day or previous 2 day upside breakout. To make it more robust, 5-10 pips above the high.
- Wait for the candle to close within 25% of it's range towards the upside.
- Ensure that there is no resistance very near to the entry (between entry price and profit target)
One may think that with all these, we will miss out on some profit. That's true, but it would also keep you away from a lot of losing trades as well.
These along with many others are countless ways to analyse your trade and eventually will give you confidence to take the trade or to trade a larger size or to stay in the trade for longer.
At the end of the day, we need to realise that we are not trading merely for the fun and thrill of it. The single most motive is to make money.
Cheers :)
