Monday, October 6, 2008
Entrys...
Entry rules.
Most traders spend more time analyzing entry rules than any other rules, though the other aspects of trading are equally important. There are many different ways to trigger an entry, you have decide what works for your style of trading.
Here are some suggestions;(a) Should you enter at a certain price?(b) Enter long when the chart drops to that price? Or when it rises back through that price?(c) Will you enter when a certain indicator does something?(d) Should you jump in after the chart rises above a certain price (breakout)?(e) Should the chart maintain above (or below) a certain level for a certain amount of time before you enter?
The above suggestions are only a few random ideas, the number of possible entry rules is endless, and you can combine several. You will have to test many of them to find the rules that have potential for your trading style, and your operating conditions. For a trading system to be successful, you must be able to duplicate your decision repeatedly, over many trades, with a positive result overall.
Define your own entry rules, and document them. Then check that each trade complies with your rules.
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