Currency Trading Information Channel |
|
|
|
Day Trading the Index Futures - How to Judge Good EntriesQUESTION: If the SP futures fall through support and go straight down for another two points, and I want to get short, should I a.) enter immediately, b.) two points below support, or c.)should I wait for a pullback and then try to get short? You've got to be patient enough to wait for entries that have two things: first - a high probability of immediate gain, and second - a small potential for loss if the worst happens and your hard stop gets hit. This principle applies to all entries, and it's useful to think about it when you're trying to decide whether to enter on a pullback or a continuation of a move. Entering on a pullback offers less dollar risk than chasing the market because you can place your hard stop on the other side of support or resistance and risk only a point or two. (Of course, this doesn't mean you're going to hang around and let the market hit your hard stop if things go wrong.) Entering on a pullback also gives you a better chance of gaining a point or so in the first 30 to 60 seconds of the trade. This is important, though very few people seem to be talking about it, perhaps it's a well kept secret. I rarely (almost never) chase the market. Here's why. Usually, if you chase the market for your entry, you'll get filled about the same time the crowd's emotion is exhausted. The market will pull back and you'll have to get out immediately (if you're smart). On the other hand, if you're stubborn and you don't get out immediately, you'll have to suffer through the pullback and *hope* that the trend continues before your stop is hit. If the market gets close to your stop, you'll be tempted to move the stop away just a little bit. Once you give in to the temptation, you've got an expensive trading habit that may eventually take you out of the business. Whenever you find yourself *hoping* that the market will come back and get you out of a bad position, you really have to head for the exits *now*. Don't even think about the commission, or all the time you spent waiting for the setup. just get out. QUESTION: What if there is no pullback? If the market breaks through support and keeps going down without a pullback, you just have to be a pro and let it go. All the lost opportunity in the world won't take your account balance down, but chasing high-risk, low-probability entries will cost you. Mike Reed is author of TradeStalker's RBI Trader's Updates. He has been trading the Market for 23 years. His support and resistance numbers have been published on the internet since 1996. Mike's nightly support and resistance zones are specific and incredibly accurate. He offers an unlimited free trial of his nightly TradeStalker RBI Trader's Updates. http://www.TradeStalker.com Copyright 2005 Mike Reed
MORE RESOURCES updated Tue. March / 19 / 2024 FOREX.com vs. Robinhood: Which Is Right for You? The Motley Fool Forex FXCM USD/JPY Ahead of the BoJ, and then on to The Fed FOREX.com US Forex trading during the holy month of Ramadan Bluefield Daily Telegraph EUR/USD Analysis Today 18/3: Downward Trend Expected (Chart) DailyForex.com Burkina Faso, Mali and Niger hint at a new west African currency: what it'll take for it to succeed The Conversation USD/MXN Analysis Today - 18/03: Nears Support (Chart) DailyForex.com Forex Today- 18/03: Anticipated BoJ Rate Hike After 17 Years DailyForex.com Best Currency Pairs to Trade in 2024 Admiral Markets Stock market today: Asian markets retreat after data dash hopes that a US rate cut is imminent Sunbury Daily Item USD/ZAR Analysis Today - 18/03: USD/ZAR Eyes Uptrend (Chart) DailyForex.com S&P 500 Forecast Today 18/3: Buy-On-Dip Strategy (Video) DailyForex.com FX: Mixed outlook for carry trades as markets read the runes on rates Euromoney magazine USD/TRY Forecast Today 18/3: New Highs, Lira Weakens (Chart) DailyForex.com Dollar supply rises to $11bn, naira closes 1,572/$ Punch Newspapers Forex Trading for Beginners NerdWallet Towards Increasing Complexity: The Evolution of the FX Market - Liberty Street Economics Liberty Street Economics - Why Is the Forex Market Open 24 Hours a Day? Investopedia This week's short USD/JPY trading outlook IG UAE (English) Best Forex Brokers In February 2024 Bankrate.com GBP/USD Forecast Today - 18/03: Pair Tests Key Zone (Chart) DailyForex.com Stock market today: Asian shares mostly decline after Wall Street drifts to a mixed close KTVE - myarklamiss.com Stock market today: Asian shares mostly rise after Wall Street's record rally Colorado Springs Gazette 4 Best Forex Brokers for 2024 NerdWallet Exotic Currency: What it Means, How it Works Investopedia How Often Do Exchange Rates Fluctuate? Investopedia Trader's Case Tests DOJ's Policing of Global Currency Market The Wall Street Journal GBP/USD Weekly Forecast- 17/03: Range Tests Continue (Chart) DailyForex.com Weekly Forex Forecast - 17/03 (Charts) DailyForex.com China's New Currency Playbook Council on Foreign Relations Silver Forecast Today - 18/03: Silver Rises Steadily (Chart) DailyForex.com GBP/USD Signal Today - 18/03: Finding Support at $1.2727 DailyForex.com Currency market subdued ahead of fresh US economic data The Economic Times EUR/USD Forecast Today 18/3- Euro's Market Moves (Video) DailyForex.com AUD/USD Signal Today- 18/03: RBA & Fed Decision Wait (Chart) DailyForex.com Gold Forecast Today- 18/03: Continues to Consolidate (Chart) DailyForex.com How can blockchain platforms make currency trading cheaper? Financial Times USD/CHF Signal Today - 18/03: USD Tests 200 Day EMA vs CHF DailyForex.com AUD/USD Forecast Today 18/3 Continues to Consolidate (Video) DailyForex.com EUR/USD Analysis Today 14/3: Uptrend Awaits Stimulus (Chart) DailyForex.com 6 Most Popular Currencies for Trading Investopedia Trading Costs - Trading Charges FOREX.com Gold Short-term Outlook: XAU/USD Begins Descent FOREX.com US
|