How to Know When to Enter a Trade
A frequently asked question I routinely get is “Tom, when you have multiple levels of support/resistance, trend, or fibs how do you know which is the best level to use to get into a trade?”
The simple answer is I don’t. Nor, with any certainty, does anyone else.
“So what do you do” becomes the follow up question.
Sometimes I try them all and if my directional assessment is correct then one of them typically works.
You see, a trade entry level is nothing more than an educated guess and once I learned that I set out to obtain the best education I could. Along the way I tried several different systems, signals, indicators, trade rooms, etc. but found that none of them provided the logic or consistency that satisfied my need to learn a process that was self-sustaining.
I had a few mentors who were instrumental along the way. None more important to my learning process than our own Michael Perrigo. Before we collaborated on ChartPros Mike was my instructor and mentor. I was among the first students to take his Forex Mastery Course (now updated and named Price Action Master Certification Course).
Additionally, I enrolled in a very intense Boot Camp that he taught for about 9 months with a handful of other traders that reinforced and allowed me to apply what I had learned in his course.
One of the first Boot Camp requirements was to chart and only trade using support/resistance for 3 months. And let me tell you, if you can be successful trading using only s/r then it only gets easier after that when you also learn how to properly use the 6 different Fibonacci types we teach.
And that's exactly the formula I followed in that NQ long trade that netted my largest single day trade this year of 264 points!
Now, I’m blessed to be able to pay it forward through ChartPros and offer that same education and training to other traders like you.
But in the spirit of making a good thing better I relied on my 20+ years experience in delivering online training and workforce development to over 3 million adult learners to turn the Price Action Mastery course into a best seller!
I believe it’s important to provide interactive and engaging learning environments especially for what many consider intimidating or complex topics – like trading.
So to finish up on the initial thought of when to enter a trade, once you’ve entered a level (with risk management to fit your trading style) and that trade is working and going in your favor be sure to let your winners run to your pre-planned targets as this is what it takes in the long run to be a successful trader.
This can often be easier said than done…
If you’re ready to boost your trading confidence and consistency, we’re here and ready to help you achieve your goals!
I'd really like to hear from you and learn what your biggest challenges are. It's very likely that earlier in my trading career I faced them too.
You can send me a private message at this link or publicly post in the comments section below.
You can send me a private message at this link or publicly post in the comments section below.
Tom Winterstein, MBA
Certified Mental Performance Coach
ChartPros Founder
Certified Mental Performance Coach
ChartPros Founder
You traded a fair value gap, at a level that represented a discount, in a strong trend…that is why it worked!
Learning to chart and learn to be patient with setups and risk.