Wednesday, May 22, 2013
Never Approach an Entry with Short Term Profits in Mind
NEVER Approach an Entry with a short term profit in mind (ie. "I Just Need 1pt" - Just this thinking alone will set you up for a loser.
The 1st reason is that when price moves against you, you are more likely to hold waiting for that small uptick that you want.
2nd When price moves in favor by your small amount if you close for a small gain, you have set yourself up for regret and are more likely to come back with another loser.
3rd reason is that once price moves that small amount in favor you will need to be extremely quick to close and hope to get a good fill. if not you try to hold for an even bigger gain further setting you mind up for a losing trade.
And finally if you enter trades with short term targets you are less likely to risk more than the small amount your seeking and will often be stopped out or spooked out of a possibly good trade.
The proper approach: Allow the market to flash "FREE MONEY!! COME AND GET ME!!" without any specific short term target to limit your potential. When price fluctuates in any direction you are more likely to remain focused and be willing to hold or cut out if the signals warrants