It is tempting to jump into a trade, fearing of missing a big move. And sometimes we will. But think twice: in most cases, there will be a pullback. Buyers will stop buying, weak hands will freak and sell, and price will drop, only to tell the big guys to start buying again. Nothing new there: we also like to buy when price is the lowest, don't we? So in most cases, the pullback will give us the best entry point, the best price and the best reward/risk ratio.
So practise patience, wait for the pullback, then use the LONG or SHORT dropdowns to enter the trade at the most ideal location. Should you miss a good trade every once in a while, don't fret, the correct practice is the one that will pay off in the long run.
Watch the video below for the details.
6E 2016 06 17