Timing your entries

I have often tried to trade stocks that had recently broken out and still looked like they probably had some more room to run. And frequently i got stopped out with a loss in those stocks,only to see them have huge runs the next day,when i didn’t trade them any more. There are not many things more frustrating than losing money in a stock that is going up all the time, just by being in it on the wrong day


But there are simple ways to avoid that. Even if you had a bad trade in a stock,that doesn’t mean that this stock won’t eventually do what you thought it would. Only perhaps a day or two later. Just continue to keep the stock on your watch list (and watch it). This way you won’t miss it when it finally does go up. The problem with that is, it can lead to many false entries if you have no strict system that only gets you in at the best moments.  Also if the market is weak you cannot expect the stock to perform the same as if the market was strong. And it is of course also possible that the stock continues to go down instead of up. In that case your system should keep you out of the stock and you should delete it from your watch list until it looks attractive again on all timeframes.


Never forget that stocks never go up in a straight line. Even in the strongest uptrend there will be down days, so you have to be prepared for that. But if a stock is in an uptrend on all timeframes it will most likely continue higher sooner or later. Then your alerts should go off and your charts should be prepared.


About Schwarzdaytrades

I am a full time day trader. I like to share my opinion about stocks and the psychology of trading.
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