P1: PIC/PIC c06
August 18, 2008
Printer: Yet to come
HIGH PROBABILITY TRADING STRATEGIES FOR ANY MARKETS AND ANY TIME FRAMES
FIGURE 6.10 Trade Entry on Trailing 1BH
Most of the preceding examples showed successful trades where the trade was executed and the market moved in the anticipated direction. The objective was for you to learn the entry strategy and exactly where the entry and stop prices were in each situation. Youâ€™ll have plenty of losses where the entry is executed and the market immediately turns around to stop out the trade. But the losses will be relatively small and the potential gains relatively large. Plus, there will be many setups that are just not executed as shown in an example near the beginning of this chapter. In the next chapter, you will learn the stop-loss adjustment and exit strategies to manage the trade from entry to exit and hopefully take advantage of the majority of any trend that develops. Now letâ€™s look at the second entry strategy, the swing entry.
ENTRY STRATEGY 2: SWING ENTRY AND STOP Concepts are important. The concept has to make sense before an action is taken. In the case of entry strategies, the concept is that the market must move in the anticipated