Pax,
Today's uptrend ONLY decent entry was right after the Double Bottom confirmed itself. Everything else was not an optimal entry because it never stopped.
As far as your stop question, at first hand it might look like a simple one but it's a key element in trading.
You want to reduce risk and protect your capital right ?
You agree that we never know if our targets will get hit right?
Yet you don't want noise and volatility to stop you out right ?
Then your only solution is to be patient, extremely patient and base your entry on your stop.
All you really need in trading is a few good setups a day, nothing else really.
Your stop should be relatively small but most importantly placed in a LOGICAL spot, don't fix yourself too much on how many points they should be but on the where. They need to go below lows, above highs, protected by known support and resistance.
Think of them as your children, they need to be guarded and well preserved.
If you don't see a safe area to place your stop or in this case your children, then no trade, no leaving the kids in the
open jungle.
If using 50% fib retracements as entry then below the 61.8% but always in logical and strategic spots.
Don't fixate too much on the entry but on the stop, this should help you define your risk and protect your children better. In fact, consider placing your stop first then your limit order.
Hope it helps.
Anek
Today's uptrend ONLY decent entry was right after the Double Bottom confirmed itself. Everything else was not an optimal entry because it never stopped.
As far as your stop question, at first hand it might look like a simple one but it's a key element in trading.
You want to reduce risk and protect your capital right ?
You agree that we never know if our targets will get hit right?
Yet you don't want noise and volatility to stop you out right ?
Then your only solution is to be patient, extremely patient and base your entry on your stop.
All you really need in trading is a few good setups a day, nothing else really.
Your stop should be relatively small but most importantly placed in a LOGICAL spot, don't fix yourself too much on how many points they should be but on the where. They need to go below lows, above highs, protected by known support and resistance.
Think of them as your children, they need to be guarded and well preserved.
If you don't see a safe area to place your stop or in this case your children, then no trade, no leaving the kids in the
open jungle.
If using 50% fib retracements as entry then below the 61.8% but always in logical and strategic spots.
Don't fixate too much on the entry but on the stop, this should help you define your risk and protect your children better. In fact, consider placing your stop first then your limit order.
Hope it helps.
Anek
