Hi,
I am facing an issue in my trading. I need help.
In an uptrend I am buying stocks at pullback…sometimes after buy I see price starts going into sideways and my money gets tied up there over a month.
Is there anything I can think of here so that I can reduce the chance of falling in such type of situation ? Is it possible to find moving stocks. If so how ?
This is very much frustrating. Need some guidance here.
Thanks for your time.
In order to properly answer this, people are going to need more information than “In an uptrend, I am buying stocks at pullback”. Is that your entire strategy?
It’s almost impossible to predict why a stock would pullback, then move sideways.
To me, it sounds like your strategy needs tweaking.
You need to have a time value associated w/ your trades.
i.e. “If my profit target isn’t hit in x days/hours/minutes I’m booking the trade”.
Capital getting tied up in “sideways” markets is a very common rookie mistake, but it happens to all of us.
Maybe you’re getting in after some profit-taking ahead of an important level, and there is just no demand to move prices higher?
Do you look @ fundamentals? P/E, eps, market cap etc etc
Do you watch the corresponding index?
With the amount of info you’ve given, it’s going to be very challenging for anyone to provide any type of critique/opinion.
I have thought about it earlier… and I rejected this idea… .reason being , this just takes more trading charges / taxes etc without any real outcome… Also If I move to other trade …this same thing can happen there also…so I rejected this whole idea altogether…rather was thinking about entry strategy improvement.
I was thinking to a get confirmation of strength before entry. I know nobody can predict future but at least thinking about higher probabilities.
FOREXunlimited is right. Maybe if you post screen shots of the time frame or frames you used to enter and managed your trade on that may provide the answer. I don’t know if you use a lot of indicators but if you do, it will be better if you just show your entry along with time frames and just list the indicators if any
Gp
Daily chart.
Entry is at vertical line. price was ranging almost 10 days after the vertical line before going down …sometimes this type range goes for longer period of time and money gets stuck.
I got ya. You’re entering to early. price is still consolidating.
If you are going to trade off a ranging price, first select the top and bottom of the range draw 2 lines top and bottom then wait for price to close below either top or bottom of the range.
I should have added everyone is different about where to enter. Ive see traders use : first close under or over range lines, or 100 pips above or below, or 50 pips above or below, whatever you use for your rule, make sure to be consistent
There are tons of utube video’s on break out trading
Hope that helps
Gp
First thing which stuck out to me like a sore thumb about this price chart is the increased presence of sellers with each leg up- big red flag (to me).
Up until (and including) your entry point, the market moved in 8 legs (4 bullish moves, 4 pullbacks).
With each pullback, look @ how sellers are coming more into the market.
With each pullback, volatility is increasing.
That is a sign that buyers are losing ground and counter-trend players are willing to sell more heavily into strength with each new high, in anticipation of moving the market lower.
Increase in volatility = increased potential for a reversal.
Seeing that exhaustive price action @ the top of the most recent leg coupled w/ the increase in volatility I’d aire on the side of caution of going long.
Clearly, hindsight is 20/20, but, it’s really easy to see the increased pressure from sellers with each pullback before you even decided to enter.
Just because a strategy gives you a signal to go long (i.e. pullback into support in an uptrend, oversold stochastic, pinbar reversal) doesn’t mean you can ignore the price action context leading into the signal generation.
your problem is your unwillingness to admit you are wrong (price should pull away, but inside it goes sideways).
If you were really confident in your analysis you wouldn’t have any issues leaving your trade open, but the greed of “making trades do something” is causing you to trade to fulfill your fix of adrenaline. If you would instead say “you know what I was wrong in this analysis, im pulling out”, you now just freed up all the margin to pick another potentially better trade.
Good to hear from you bro. As always I think GP00 and Jake are right on the mark. But if you find this is happening on a regular basis and your bias is more right than wrong then maybe a simple scaling MM strategy will help. This will help keep your equity available for trading but still maximize potential return
