5-14-2023: Finding Entry Points

Finding Entry Points

Finding good entry points is one of the most important parts of trading. When it comes to trading you have to get good at finding a good point to enter into a trade because where you enter into a trade means how profitable you’ll be and how much time you put into trading everyday – or whenever you choose to trade. 

Finding entry points is like finding good food, it’s like finding a place to live, it’s like finding a spouse or girlfriend / boyfriend. The reason I say that is because the moment you enter into a trade you’ll enter MAKE money or you’ll LOSE money. Ideally, you want to MAKE money – so you’ll have to good at identifying trends, breakouts and points where to either enter into a CALL / BUY or a PUT / SELL. 

Now, don’t get me wrong, it’s not the only thing that matters. Risk management matters, the ability to stay in a trade matters, position size matters… many things matter when it comes to trading, but where you enter means A LOT. 

So where, exactly, do you enter a trade? 

Well, it could be where an indicator tells you to get in. If you’re trading with moving averages, it could be the crossover, it could be when the price moves over or under the moving average. If you’re trading VWAP, then it could be where price crosses VWAP. If you’re trading the MACD it could be when the price goes above or below the zero line.

However, if you’re trading price action, which is important to know, even if you’re trading with indicators, you’ll have to learn how to identify market trends, consolidation and breakout zones. What does that mean? Well, you’l have to observe when the market is STAGNANT and isn’t moving much, then know that the price will eventually break to the upside or the downside. 

Watch the video above for examples, learning by watching can take you a lot further than just reading a blog article 😉