Help in Entry/Exit points

Hello fellow traders. I have a problem, I am at a point where i can correctly identify which direction my chart will go however i don’t know when. This is problematic as I usually get stopped out before the price goes in my favor. I do not want to widen my stop-loss as this will just be against my strategy. Can some experienced traders here share how do they determine when to enter the market?

Also when to exit, If my trade does not hit stop loss, it usually goes in my direction only to reverse before hitting my profit target. Again can someone give my any advice? Any help is appreciated.
Thank you.

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Hello.

I think it depends on your trading style.

You say you are able to identify direction. The issue is that direction is a matter of perspective.

For example:
Trader A and Trader B are looking at the same chart at the same time.

Trader A thinks the market is going up.
He goes long with a 300 pip T/P and a 100 pip S/L

Trader B thinks the market is going down. He goes short at the same price Trader A went long. He also has a 300 pip T/P and a 100 pip S/L

Trader A: Long
Price goes up 150 pips from entry, then falls 300 pips to 150 pips below entry, hitting Trader A’s S/L along the way.

Trader A claims he was right because price went up 150 pips before hitting his S/L

Trader B: Short
Price goes up 150 pips from entry and hits Trader B’s S/L along the way. Price then falls 300 pips to 150 pips below entry.

Trader B claims he was right because price went down 150 pips from his entry after his S/L was hit.

Both traders claim to be right about direction but both traders lost.

Who was right? Or where they both wrong?

Instead of trying to “identify direction”, maybe you should focus on trying to identify low risk opportunites that present themselves.

Dont make PREDICTIONS, make WELL CALCULATED RISKS.

Best of luck you

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Backtest. Analyze what setup you use (logically) to decide when to enter and exit. Take past data and see how this pattern performs.

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Literally, Mind = blown.

The fact that you can consider (but reject) widening your stop loss suggests you have a pip-based SL, rather than TA-based. A pip-based SL can be moved to wherever you like, a TA-based SL has only one level.

So you are probably placing your SL at X pips below entry because either $X is what you can afford to lose or because $2X or $3X is what you want to win and you believe your r:r must be 1:2 or 1:3. Am I correct?

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Greedy trader = losing trader. You have the answer right under your nose. Widen your stops and back test.

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yes. it seems from your words i shouldn’t do this. i place tp level according to what charts tell me. and place stop-loss according to what my profit levels are. Is this wrong?

okay but to what extent?
I read it in ‘Education’ that one shouldn’t deviate from his/her strategy. maybe I should readjust that.

One should also not flog a dead horse. Ask yourself this, does my strategy actually work. As there is a lack of disclosure to what this i,s how are we to help? Only you can do that. To what degree have you back tested your strategy?

Due respect, do not be greedy lazy trader.

How to determine entry and exit point, for me usually will look on daily timeframe and also weekly, with looking these timeframe hence we can analyze major trend on long term, if having tendencies to uptrend, hence will going to H1 then look on support area to determine entry and put stop loss below these area, or sometime I am open pending order

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That means, you can identify the trend of market, but you are unable to point out beginning and end point of any trend! By the way, do you use support and resistant levels in your chart? If yes how?

If this happens continuously then you can remove your take profit a few points lower. For example, avoid to place take profit on psychological level e.g. 1.1000 or 110.000.

How wide are your stop losses currently?

Yes, I believe it is wrong, though lots of text books etc. will say this is a good way top control risk and make sure you win as many trades as possible. But I say its just a slow road to wiping out your account.

Both SL and TP should be identified from the chart, not from how much money you can stand to lose from your account without becoming a manic depressive nor how much money you need to make to pay your phone bill. The market doesn’t know or care about you and your account and your monthly household bills. But it does take account of price history and that’s all on your chart.

If your TP is a greater distance from entry than your SL, all well and good. Now calculate your position size based on the distance to the SL.

Actually, I don’t think setting a fixed TP is a good idea as it can stop additional profits from being earned if price goes higher than you thought it would. Better to let the price run, but maybe define the TP TA that would get you out if that happens.

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Exactly. If your considering widening your SL, consider picking a new S/L that leaves zero room for this consideration

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As long as the wider SL is based on some kind of analysis, and @ the STRONGEST LEVEL POSSIBLE, as apposed to widening for the sake of incresing drawdown capacity.

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Identifying trend sounds simple, but its also a matter of perspective, not to mention timing.

Example:
The 1hr/4hr can be trending up as part of a minor retracement in the daily/weekly, that has been sideways or trending slightly down. And while the daily/weekly is sideways/trending down, this is just a minor retracement in the monthly, which is actually in the middle of trending up.

And good luck trying to pick tops and bottoms and start and finish of trends.

Hit the nail on the head again Tommor. I agree 100% with these 4 points.

Great point @PanchoVilla84

@frazali32 another idea to consider is reducing your trade size. This would allow you to risk more pips with your stop losses without risking more dollars.

Do not confuse a greedy trader with a stupid trader. Very often my paranoia and fear of losing a lot - spoiled me very profitable deals.