Started a thread on taking loss so now we must start a thread with ideas for trade entry.
This is for intraday trading
I will start with an idea later in this post for a trade entry.
How or why do we enter trades? we enter most trades to make money or at least try but should we be looking at the trade entry from a standpoint of what is the worst case scenario of loss at this point and if that is the case then why do so many not take appropriate losses and how is it a thread about TRADE ENTRY is starting out on a meandering path talking about losses from start point?
well we often just click and trade without thinking maybe even on a whim or maybe because we were looking at the wrong chart and traded the wrong insturment that can happen. here is a short list of reasons we might enter a trade.
1. technical chart reasons to buy or sell i.e. trend line broken
2. fundamental reasons i.e. economic report came out today i.e. jobs report
3. just guessing up or down i.e. its just 1 micro!
4.
price action hh ll
5.volume action increasind decreasing
delta etc
6. we want action see number 3
7. Technical price chart pattern
8.
POC point of control i.e. mkt deltas and volume at price charts etc
9. Freind likes bitcoin higher see number 3 unless friend is elon musk
10. chart indicator or analytics say to buy or sell
11.
momentum or speed of the market
12. the
tape the order book
like a i said a small list
but when we enter an intraday trade it really boils down to 2 different things to start and that is we are expecting the market to do this "X" because of this "Y" so we are hoping xy are highly correlated once we take the trade. in simpler terms we would say
1. i think the market is going higher from here because it already fell this much and looks low. i think the selling is over. so I am buying (
COUNTER TREND). This is a long trade into a falling market. we are buying lower lows.
2. I think the market is going lower from here because it just moved a lot lower and it looks like it might continue in the same direction longer so I am going to go with the trend and go lower by selling with the momentum. we are selling lower lows.
now. just reading those 2 and you can and should try to word them yourself but you will see the 1st option the counter trend move always seems like the easier one to get behind and the one that makes us feel smarter and the one that makes us think we are going to be very big winners by being almost the 1st people to buy! more on this later.
At least to me is for some reason is way easier for me to buy into a sell off and get long than it is for me to sell into a momentum lower lower selloff and go with this trend. (an dperhaps it is also to just sell period even if long and losing.. seem easier for me to buy a losing short rather than sell a losing long. and this is just me. for me it always seems easier to be a buyer in any situation. i just like to buy I guess!!!!
EXCEPT WAIT! why is it so damn easy for me to click sell and take a small profit but way more difficult to hit sell on a large profit and why can i just go market so easily to take a small profit or any profit for that matter? but i will wait and wait to get filled until i miss the trade on a
limit order to enter the market long but i digress try and keep up! !ha ha ah I got long the ES earlier as i was sitting here. i study the mkts a lot. i enjoy watching random walks probably a little too much. that tag line for plenty of fish really reeled in the ladies. JK any digression 2 so im at what about 68. % done with digression..
Oh yeah trade entry.. so for me easier to buy on all occassions than it is to sell except when I am selling a profit. .that is like not even thinkng because there is no worry for loss or risk anymore. it feel sgreat to be
risk off!! maybe that is also part of the problem. maybe
risk on is where we should feel good and maybe risk off is when we whould be worreid becuase we are not making money or not trading and we are sitting here with 30 mkts and 8000 stocks. anyway ok that was 3.
TRADE ENTRY many facets which lead to position size and diversification even intraday and diversification of times and scales and am i a
scalper or am i holder and what is it that i want to accomplish when i enter this trade? I WANT TO MAKE MONEY or
points.
Trade ENTRY. Look at a 5 minute bar any 5 minute bar was it green or red? if green buy market
and if red sell market AFTER THE 1st 1 min and 20 seconds after the close of the 5 minute bar. or 80 seconds after the close of the 5 minute bar. if red sell if green buy
this ensures that you are going with trend and quite possibly buying low. if you are not buying low or high then you buying higher which is going with trend or selling lower which is going with trend. this way you take out your decisions and let the mkt dicate your price not YOU.
That was it for entry so far but feel free to add to this idea on trade entry with examples and pontifications. i got long an es earlier i did not even know teh mkt was going to be open. why did i enter well i said its a holdiay and they usually run it up on holiday markets. so i jut clicked buy and exited.
