how important is the entry and how complicated does it need to be?
- Thread starter Gordon Gekko
- Start date
Here is the exact same example you've used but YOUR TIMEFRAME let's say for example is using a 5 minute bar
meanwhile on a weekly chart this thing is in a roaring uptrend and will soon be getting near support.
The shorter the timeframe the more important it is.
Breakout I'm not disagreeing with you either. I'd be short looking at that chart the second it made a new low of the day.
Robert
Originally posted by Gordon Gekko
breakout and daniel_m,
i
this gets back to the question, if this data should not influence you, then what should?! why bother looking for upsloping moving averages or whatever? why bother even looking for a trend??? unless, the above information SHOULD influence your decision.this is what i'm talking about....if the typical things traders are looking for for entries don't matter, how important is the entry?! if the above is not important, what type of entry is important?!
What influences me is an edge. I've seen something happen enough times that I make a rule out of it that if "this" ever happens....I'll do a trade in this direction.
I than find out how often it works....how much risk /reward am I looking for/at, is this a positive expectancy indicator for me?
Robert
Breakout I can give more examples to your chart of when to go long. Say the market closes with that last print. The stock has been down 4 days in a row. The market gaps up 30 points tomorrow in the morning and this stock opens up above where it closed.
There have been some changes now to the picture...
Robert
There have been some changes now to the picture...
Robert
I agree.
noone is right or wrong. trading is subjective to your own method and that includes time frame.
there are always 2 sides on a trade.
the only way to know if you are right : did you follow your method ? (considering it is positive for you in the long run).
So both trader may make money on the trade, or none, or just one. it does not mean the trade is a no brainer or not. that's what trading is about.
indeed when you zoom in on a chart, you may miss several time frames. then don't realize what the other side is trying to achieve. and then you filter this 'view' with your own belief and method (not the ones of others).
in fact you'll never know what the other side think.
trying to out think other traders, or smart money or the market itself usually push you into a loss. because you just can't know.
that's why I focus on only what I am doing, not what I think the others are trying to do.
tntneo
noone is right or wrong. trading is subjective to your own method and that includes time frame.
there are always 2 sides on a trade.
the only way to know if you are right : did you follow your method ? (considering it is positive for you in the long run).
So both trader may make money on the trade, or none, or just one. it does not mean the trade is a no brainer or not. that's what trading is about.
indeed when you zoom in on a chart, you may miss several time frames. then don't realize what the other side is trying to achieve. and then you filter this 'view' with your own belief and method (not the ones of others).
in fact you'll never know what the other side think.
trying to out think other traders, or smart money or the market itself usually push you into a loss. because you just can't know.
that's why I focus on only what I am doing, not what I think the others are trying to do.
tntneo
ElCubano,
When you put it that way, I have to agree. Blowing a stop or your exit logic and letting a bad trade kill you definitely would be a bad exit. I was thinking more in terms of how you exit a winning trade. Even then, I can see a good case that the exit is more important. Every trade starts off equally. But some have the potential to be big winners, others don't. The exit determines if you capitalize on the big ones or not.
Still, I believe you will not be a winning trader without good entries.
When you put it that way, I have to agree. Blowing a stop or your exit logic and letting a bad trade kill you definitely would be a bad exit. I was thinking more in terms of how you exit a winning trade. Even then, I can see a good case that the exit is more important. Every trade starts off equally. But some have the potential to be big winners, others don't. The exit determines if you capitalize on the big ones or not.
Still, I believe you will not be a winning trader without good entries.