support and resistance
- Thread starter eleanorK80
- Start date
My friend doesn't even look at the chart.
He has 6th sense.
And he drives a new car every 1 or 2 years.
First you determine potential areas which others will likely perceive as important (since true S/R are areas which many other will perceive as S/R lol). Then you choose what you trade - breakouts or bounces from the areas. Then determine cancellation scenario (why and how you can be wrong about your prediction). Then implement money and risk management - lot size, stop loss, take profit.
If it was that simple to make money trading, everyone would trade stocks for a living. It does not work systematically.
S&R levels only serve to show me the real levels.
From Larry Hite from his book, The Rule. His rule is "cut your losses and let your profits run." Just remember that no matter your strategy or methodology, day trading, swing trading, trend following, etc. You will achieve more if you do your own research. Lots of material on You Tube. And don't let others tell you that the videos are useless. I still learn a lot from the videos from other traders. The best part, you do not have to buy anything. A veteran floor trader who is now retired interviewed by Humbled Trader said that they do hunt for stop losses to make you sell your shares cheap. So, he said, do not buy right away. Wait for it to blow thru the stop losses then, get in after the huge drop. The share price will rebound much, much higher.
Here are a couple of nuggets for you. Stock selection is much more important than trade entries. If you enter late, it does not matter if you buy a good stock since, the upside is that much more. Buy stocks that are going up. Sell stocks that are going down. Do not average down as the smart asses keep telling you. Why would you add to your losses? Do have a trailing stop loss on any stock you buy to cut losses and maximize profits.
moving away from crowded charts. Each trader's journey is unique, and it's valuable to see different perspectives like yours
When members share their strategies or insights, it benefits everyone, not just one person. And for those who prefer not to share, that's completely okay too
sharing experiences and advice on forums isn't just about individual gain. It's about community learning.
When members share their strategies or insights, it benefits everyone, not just one person. And for those who prefer not to share, that's completely okay too
Experienced traders can identify it though eying the chart and there are numerous indicators including moving average that helps is identifying the support and resistance level well.