Low Risk Entry

Beginner Questions
1

I am doing trend trading on daily chart.

I trade on pullback… and so I enter after breakout … my stops are quite big…how do I time my entry with low sized stops ?

Please guide.

Thanks

2

Are you waiting for an activator bar as an entry into your trade?

A lot of traders use a pin bar reversal after a pullback and typicall place their order on the break of its high (if long) or the break of its low (if short) with their stoploss below the low and above the high respectively… To reduce the difference between your stoploss and entry point, it may be worth going to s smaller timeframe although these timeframes are a lot more volatile than, say, the daily or weekly timeframe.

Hope this helps…

3

To reduce the difference between your stoploss and entry point, it may be worth going to s smaller timeframe

what you want to look at lower timeframe ? I am not convinced.

Could you please explain further ?

4

I would prefer not to trade on a lower timeframe as there are more whipsaw movements…but if you want a tigher stop (smaller difference betweeen your entry and stoploss) then you do not really have too many more options UNLESS you have a tigher stop of the timeframe you are trading off (ie: daily). To keep risk LOW, then I would risk NO MORE than 1-2% of your trading account’s value.

Hope this helps