I am sure there have been several times where you have entered a trade, saw the market move against you significantly and by the time it moved significantly in your favor you had already closed the trade in loss.
This a very frustrating trading situation as it can mess up your psychology and may force you later to make mistakes such as try to re-enter the trade once it is too late.
You probably say to yourself " I was right, but I got unlucky, or bad timing ".
WRONG
You are still wrong. It is not just about being right,but also being right on the right time.
Therefore it is equally important to time up when you place your trade.
Advantages of timing your entry
- Avoid having to watch the market move against you
- Maintain better psychology after you have opened the trade
- Increase your chances of earning more pips in shorter time frame
How to time your entry
1) Prepare a trading system that has some entry rules
2) An an additional entry rule to your system that provides additional confirmation
3) Monitor the market every few hours to identify any potential trades using your entry rules under 1)
(It is important to be prepared in advance for the trade and not rush into it)
4) Once you have identified a potential trade wait for the additional entry rule under 2) to happen and then enter the trade
Real Example
Yesterday (3.1.2013) I posted in the EURJPY thread that can be found here about buying EURJPY
( http://www.forexfactory.com/showthre...=46066&page=18)
Since my post EURJPY not only went up around 100 pips but it also moved up in a straight line with candles being up so for.
(can be seen in the attachment)
Hence I was able to make this sweet profit without having to go through the pain of watching the market move against me and in a relative short time as I timed my entry using the rules I described under my system.
I use a system that takes into account the Trend ,the Wave (short term trend) and the Extremes (oversold/overbought)
Regards
This a very frustrating trading situation as it can mess up your psychology and may force you later to make mistakes such as try to re-enter the trade once it is too late.
You probably say to yourself " I was right, but I got unlucky, or bad timing ".
WRONG
You are still wrong. It is not just about being right,but also being right on the right time.
Therefore it is equally important to time up when you place your trade.
Advantages of timing your entry
- Avoid having to watch the market move against you
- Maintain better psychology after you have opened the trade
- Increase your chances of earning more pips in shorter time frame
How to time your entry
1) Prepare a trading system that has some entry rules
2) An an additional entry rule to your system that provides additional confirmation
3) Monitor the market every few hours to identify any potential trades using your entry rules under 1)
(It is important to be prepared in advance for the trade and not rush into it)
4) Once you have identified a potential trade wait for the additional entry rule under 2) to happen and then enter the trade
Real Example
Yesterday (3.1.2013) I posted in the EURJPY thread that can be found here about buying EURJPY
( http://www.forexfactory.com/showthre...=46066&page=18)
Since my post EURJPY not only went up around 100 pips but it also moved up in a straight line with candles being up so for.
(can be seen in the attachment)
Hence I was able to make this sweet profit without having to go through the pain of watching the market move against me and in a relative short time as I timed my entry using the rules I described under my system.
I use a system that takes into account the Trend ,the Wave (short term trend) and the Extremes (oversold/overbought)
Regards
Attached Image(s) (click to enlarge)
