How many times, did you have the right idea or trade plan but you boshed the execution and got faked out or had a terrible entry. if you are in my situation, Many!!!!!
I had myself thinking and looking at recaps from others . How can i improve that ?
just to give you a bit of insight, I daytrade options on the big tech names with heavy liquidity
What i was doing before :
- Entry full position at E1 using either a level or Moving average as stop area
- In best case scenario the trade would work out rightaway and full gain potential reached
- often stopping out as risk tolerance was streched even before going back to that level or Moving average used as stop
- right after i stopped out, i would re-enter the trade at E3 and it finally worked out (best case scenario after stopping out)
What i am doing now :
- Entry 1/3 position E1 to have some skin in the game expecting a pull back before makeing the move
- If the stock makes the move right away i limit my profit potential but still have a winning trade
- when pull back happens wait to see weakness happen at my initial stop level if i am short or strength if i am long and add another 1/3 position to have a better average price E2
- Add the final 1/3 position when the stock goes back to E1 level and use your normal sytem R/R ratio to take your profits
Advantages:
- if the stock does a reversal and you get stopped out, your average is closer to stop area and your loss smaller or if it is a violent reveral, you get stopped out of 1/3 or your normal entry as you never had the chance to add the 2/3
- you are more consistent with your stops as you can resist pullbacks and be confident to add in
- you still follow your system using your technical level or MA or VWAP stops but with a better entry
- lets face it there will always be a pullback when you enter the trade
- can be benificial entry strategy for stocks or options with higher spreads
- Easier to stop out at breakeven if you finally do not trust the move
This entry strategy can be used on any timeframes
Since i have been doing it this way, i have seriously upped my game with a much higher win %
might work out for you
have a good one !
I had myself thinking and looking at recaps from others . How can i improve that ?
just to give you a bit of insight, I daytrade options on the big tech names with heavy liquidity
What i was doing before :
- Entry full position at E1 using either a level or Moving average as stop area
- In best case scenario the trade would work out rightaway and full gain potential reached
- often stopping out as risk tolerance was streched even before going back to that level or Moving average used as stop
- right after i stopped out, i would re-enter the trade at E3 and it finally worked out (best case scenario after stopping out)
What i am doing now :
- Entry 1/3 position E1 to have some skin in the game expecting a pull back before makeing the move
- If the stock makes the move right away i limit my profit potential but still have a winning trade
- when pull back happens wait to see weakness happen at my initial stop level if i am short or strength if i am long and add another 1/3 position to have a better average price E2
- Add the final 1/3 position when the stock goes back to E1 level and use your normal sytem R/R ratio to take your profits
Advantages:
- if the stock does a reversal and you get stopped out, your average is closer to stop area and your loss smaller or if it is a violent reveral, you get stopped out of 1/3 or your normal entry as you never had the chance to add the 2/3
- you are more consistent with your stops as you can resist pullbacks and be confident to add in
- you still follow your system using your technical level or MA or VWAP stops but with a better entry
- lets face it there will always be a pullback when you enter the trade
- can be benificial entry strategy for stocks or options with higher spreads
- Easier to stop out at breakeven if you finally do not trust the move
This entry strategy can be used on any timeframes
Since i have been doing it this way, i have seriously upped my game with a much higher win %
might work out for you
have a good one !