Taking the Correct Entries and Exits
|There are 100s of strategies out there. They are with your trading friends, they are on forums , they are all over the internet. Its easy to find different kinds of trading strategies. But the challenge lies in trading them correctly. The challenge lies in find the right spots of entries and exits and having the courage and the acumen to take the correct entries and exits. This is a challenge for most retail traders. Its easy for them to spot areas of support and resistance but it’s a totally different challenge to actually take these entries and trade them correctly with stop loss and TP.
The main idea behind take the right entry and exit is to cut out the emotion behind the process. Usually, traders are very excited while trading and so when they see price rising, they want to trade. When they see price falling, they want to trade. When they see price in a range, they want to trade that as well. They always want to trade their interpretation of the market and their strategy. Not what the market is telling you or what the strategy is actually telling you. That’s why we always say, listen to the market. Don’t anticipate what it will do. Don’t try to outguess the market. It will tell you what it is going to do, loud and clear. There is nothing to assume or guess in this. Wait for the market to tell you.
If there is a breakout and the price rises, wait for the market to come back to the point of breakout and then confirm to you that the price has indeed broken out. This will be shown when the price doesn’t go back down below the breakout point (the resistance turned support in this case). This shows that the breakout was real and the price is likely to go back up again. If the price goes down through the breakout point, it just means that the breakout was a fake. Like this, the market tells you what it has done and what it will do. We just need to have the patience to listen to it and act accordingly. We need to have discipline to do that.
The key to having successful trades is to control emotions and have good discipline. Entries and exits will hit you on your face. They are always there and will always be there in future also. Don’t go in search of them, they will come to you.
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