DislikedThank you. So basically you also don't like resuces.
"Why set a figure on how many pips it has to move against you, before you look to rescue? " Because I have to allow some reasonable negative pips. No body's timing is so good that after he openned the position, it is in the money right after. Even so, a retracement could bring the position in red. Yes, I shoud look the chart for opportunity, but beforehand I must have some allowable negative pips either for MM and for resources to rescue.
Btw, if the negative pips are so small, say 20 pips,...Ignored
If trending then I have to look to the last turn behind me for my anchor, that should hold if the trend is intact, my entries (scout) will be when I feel the market is turning my way , or sometimes on a deep pull back with my anchor to support….. army is sent in when I feel the push coming.
Adding as the move goes against me, (as long as my anchor has held), is attempt to re-average to move scout in better position….. you must understand that this is adding against the trend…. You are assuming the last fractal will hold with out any type of price action to support the trend has resumed.
Once the anchor breaks, you have to accept that the trend has reversed or range has set up. Do you want to stay with your position? Here the turn on wind can be attempted on the next correction…. But it’s easier for me to just cut the position and look to enter on the reverse.
Having a feel for the higher time frame can help keep you out of this scenario more often than not. If you have missed the start of the move, it’s often better to wait for the next leg, than trying to chase price. Patience is key here, looking for the better opportunities.
I disagree with your thoughts on timing…. My best trades seem to come when I’m in tune with the market, my entries are in the money quickly. When I’m waiting on the market to do something, I often find my self sitting there on a bad date… her name is hope.
Regards,
edit: imho, just like the immediate time frame anchor, i have a higher time frame anchor and direction, a rescue would be in that direction, given that the higher anchor held. Basically your caught entering in the middle , bc, of a 3 wave, abcd, correction. You would have to wait for the cd to finish and then resume the trend, but i'd think it would be better to just trade the correction in the now.