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Northern Illinois | as the others have mentioned there is no 100% correct answer. I think people need to find a method for entering into a trade that works for them. Along with that is risk management. You can have a good read on a market and have a great entry point but often the market does what it does and you can get blown out of a position. As long as you use good risk management you will live to trade another day. Some people say never risk more than a given % of your account. The important thing is know your risk when you enter the trade and put your stop in place when you enter a trade.
I personally like to trade break outs. If I was looking at June Cattle back on May 26 just to pick a date because that is a set up that I would like. I would have had a buy stop on a move over the high of May 22 and a sell stop on a move lower than the low on May 16. When I got stopped in to the long position I would have cancelled and replaced the sell stop with a new stop just under the low of the day I got long.
I believe in going with a market as it makes new highs or new lows. If I was looking a June Cattle a month or so ago I would have been a buyer on a move over the high set on March 23 and or on a move over the high on April 21. I really don't care about the whys. Why a market is moving in the direction it is just that it is moving.
As far as sticking with your read imo use a technical signal of your choice to enter in the direction of your read. I don't believe in sticking to the read if the market is not going in the direction of your read. That is when people often get in trouble.
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