Good Setups Need Good Entries

Hey Market Pilots,

Timing is pretty important in trading. I am sure it is even more important when dealing with options since they have a specific time value associated with them. Either way, you can be right about a trend or the overall performance of a stock, but if you enter or exit at the wrong time your returns can be hampered.

This is something I had to deal with last week. I could see the kind of patterns and formations setting up on the weekly time frame for my style of trading. But the development of these patterns meant I knew that price was going to go down. My job was to figure out the exact moment they would stop going down and find support for a clean entry. I have rules for this that I can spell out, but the market doesn’t always care about those rules and the market can chop while I try to implement those rules.

I started getting into a handful of positions, but I was early and the market pulled back which put pressure on the setups I was targeting. Some held up better than others, and most are net positive now that the market’s downward pressure has been alleviated. I would have saved myself some headaches if I had waited just a little longer for the charts to set up more robustly. It can be a test of willpower to hold off when you see your setup developing and want in.

I often refer to stock trading like hunting. The ability to wait for just the right moment even though the animal is within distance is something I think about before I take a trade. Yes, price is doing what I want and is in the area, but is it ideal, and will it be the best possible opportunity? Or am I just rushing the pull of the trigger? Patience is difficult in these moments but is necessary even if it takes days for the setup to be just right.

Interested in trading alongside me? Join me in my Moxie IndicatorTM Mastery program. 

Your Profit Pilot, TG


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