How to enter a trade correctly

Trading Discussion
#1

Hello community.hope you are all great.am interested in your replies and comments about trading, here i would kindly ask you to help me know how to enter a trade.my problem comes in entering a trade.i analyse the market trend very well but when comes to entering a trade i realize that what i had computed about the trade goes against my stategies and analytics.for i.e.i anlyze a trade very well lets say i “buy” after some hours the trade reverses with a 180° “sell” which leads to a loss😩.just because i dont get it how to enter a trade at the right time.WHICH is the best TOOL i can use to determine my entry point community.someone help,.
Spill just a one secret for me and i will be grateful to use it in future because my account is diminishing each now and then😪

Regard,
Frank

#2

Volatility on the lower time-frame charts is often too powerful to make the risks worthwhile. The well-known TA patterns and set-ups which you see in text-books and Youtube clips never work quite as well as expected in hours or minutes.

Its very tough to make a profit if a “buy” set-up can reverse within a few hours into a “sell” set-up, simply because price fell.

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#3

Hi Frank.

The secret is education!

If your trades are systematically going against you I would say there is something wrong with your trading system. That’s assuming you have devised a system and aren’t just jumping in on trades and hoping you’ll win. I would go back and check and tweak your system by back testing the market until it’s profitable. Also, remember if you have a sound trading system and you let the trade run its course and hits you SL or TP it was a successful trade, even if it was a loss.

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#4

Hi, did you back test this strategy? Regards Greg

#5

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Which tool is highly profitable to use in determining entry points in a trade please.ive used Fibonacci levels, horizontal lines and trend lines but i cant still locate a entry point in mind and basic concepts having a knowledge of about so far 40% in FX.

#6

The tool used would depend on the strategy your using and what the markets are doing at that particular time. It sounds like your just looking for the allusive holy grail (which doesn’t exist) so you can deploy the indicator press the buy/sell button and watch the money roll in. If you think this is going to happen you’re mistaken. This is called gambling and is not trading.

As I said in my first reply, ‘The secret is education!’. If you truly want to know how to be profitable, and when to enter and exit trades correctly you need to educate yourself. During your education you will learn that there is no magic indicator, no magic strategy. There is only you and your knowledge.

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#7

Hhmm.i get you now.i guess thats why am lying to myself i have concepts only to apply them allusively to gain hence being a loss at the end.briefly would you please highlight for me the basic concepts i should read be educated about to be a profitable trader.
I.e Market structure
Market trend
Strategy etc

#8

I would suggest you first work your way through the School of Pipsology which will give you all the basics and everything you need to know about building strategies etc. Once you’ve done this you will need to go onto more advanced training. Make no mistakes, learning to trade is difficult and takes years.

Learn How to Trade the Markets (babypips.com)

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#9

Thanks so much.am working on it.and thanks for your time also😊

#10

hello my dear friend
i think you have to learn more than now
and you have to test your system on the online demo account to make it good
and i think you fear from the market so take care of your mentality
also you can ask your question about strategies from the people of babypips, they will help you

#11

I have found that support and resistence zones in a market trend enviroment are the simpliest way to enter a trade.

First, always refer to the daily charts for the trend - if any. Secondly use the 4hr chart for entry and in trend line with the daily chart. Thirdly, refer to the Ihr trend pattern that must be aligned to the above charts.

This is three ducks in a row strategy. Be patience, it might only occur once a week.

So next, look for the price action movement towards the resistence zone, which is determined by strong order flow. If there is daylight there is profit awaiting.

On an upward trend, place your T/P just below the price resistance zone where losing traders close their trades or would get stopped out. This is a critical edge over any random RRR guesswork.

Then place a generous S/L that will ride a short retracement without getting hit. As this process reels in a c.55% annual win rate - my annual returns are profitable. And that’s why managing a large account size is always necessary to make this trading strategy worthwhile.

Now, I would expect most traders to become bored awaiting the action and go their own way. Which is why only 15% actually become successful in the long term.

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