TIP: Jumping the gun?
|DO NOT jump the gun!
This advice is essential to survive in the first years of your learning curve.
Inexperienced traders (and sometimes experienced as well) often assume that the breakout of a chart pattern is a perfect entry. Many times this is not the case. Don't be fooled by what you see, since everybody is seeing the same as you - provided that you have acquired a certain ability to find the patterns. Considering that the most part of the retail traders lose their money, we can assume that the market will find ways to wipe out the majority of traders before resuming a trend.
Again, confer with other analysts that you are seeing the same pattern. And above all, wait for the pullback after the breakout. By now you know that the market moves in waves, that means that price comes back most of the times. If it comes back most of the times, this gives you an edge to enter at much better levels, and specially after the majority has been stopped out. At this point, you should be looking to pull the trigger. Read more
Do you want to learn more?
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