WAIT.
Since trading is about waiting, one must learn to wait.
A rule of thumb regarding waiting:
Look at the time it took PRICE to make its last HIGH and LOW swing. Wait that long before you enter a second trade in the same direction.
Example:
Assume one minute (M1) chart.
You enter long off a low. You exit for a profit but PRICE keeps going up. Price reverses back down. It took price 17 minutes to make the swing from low to high. You must wait at least 17 minutes BEFORE you enter long again.
You will miss some winning moves but you will also miss some losers.
This rule of thumb helps prevent OVER TRADING!
How much do you have to make in a day before you call it quits?
Over trading is a costly mistake.
All it takes is one or two profitable trades a day or week to have a nice profit.
HOW MUCH IS ENOUGH?
Slapfish
"My best understanding of the basic premise of TRO's methods is that I am supposed to trade based on what the price is doing right now, not what I think it might do next. His indicators give me various points to enter a current movement and be statistically confident I will gain 5+ pips.
I thought I was doing it right when last week i had an epiphany. I was sitting there waiting for the price to drop back down so I could get in on a retrace because I had missed the original entry. I was waiting, waiting, waiting..... the next think I knew, I'd missed THREE buy zone entries that could have netted me 20+ pips. What was I doing? I had my mind locked on the trade I wanted (on the past) and I missed the ones right in front of me!
That's why he boils it down to "seeing". You see what is in front of you instead of predicting (or trying to). If you look outside and SEE that it's raining, do you grab an umbrella on your way out? or do you think "it will be sunny later I better use sunblock"?"
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Way to go, SLAPFISH!
A++
The majority of trading gurus say that the EXIT is more important than the entry.
I DISAGREE!
I focus on finding entries that STATISTICALLY give me a better than 50/50 chance of having an opportunity to take profit. Notice how I worded that last sentence. It was written that way on purpose.
I get asked about SL and TP all the time. Some people get downright nasty and harshly criticize me because I don't conform to what they believe to be proper. To me, SL and TP are part of the individual trader's money management and risk management strategies and have NOTHING to do with my entry triggers.
It does not matter why you entered a trade once you are in it. Nor does it matter what your indicators say. PRICE is the ONLY thing that matters once you enter a trade. And after you enter a trade is when your money management scheme kicks in. You will either exit the trade with a profit or a loss. How much of a profit is determined by the market and your greed. How much of a loss is determined by you. It is up to the individual trader to decide when to say "when".
Do you ever notice how SOME PEOPLE go out of their way to hassle a fellow human being?
I have started a NEVER LOSE AGAIN thread on several forums.
There almost always seems to be at least ONE PERSON who deems it necessary to impose themselves upon my thread. They tell me my systems can't/don't work. They call me names like SPAMMER and SCAMMER. They say I don't answer their questions. They don't like my BIG CHARTS AND FONTS. They find something that they don't like. Simply put, they should MTOFB and/or start a thread where they can show the world just how much they know and just LEAVE ME ALONE!!
I learned that some people view threads in public forums as their own. So rather than "trespass", I start my own threads.
The internet really shows the reasons why there are still wars amongst nations in the 21st Century.