Your T.A game is great? I know right but the market doesn’t care about that always.
While you sharpen your analysis skill, you must pay attention to market psychology. One of those aspects is stop-loss witch-hunting!
Using textbook trading, ideally, you want to have an entry at a clean support/resistance zone (could be a long/short), whether you’re trading a range, uptrend, or downtrend.
Right after that, you know you should place your stoploss just a little below the line (super risk-management). After all, you entered at what you’d call a good price!
But how many times have you gotten stopped out of such trades just because a bunch of whales dragged the price well below to trigger stoplosses of smaller retail traders like you I?
Have you ever thought; What’s the worst that could happen?
If ideally this should be my stoploss area, it can also be my entry. That way you have a bigger advantage than a textbook trader who got in at flat support/resistance.
Getting into a trade at a price where other traders’ stoplosses are being taken out will make a lot of difference in your trading career!
Just place your limit buy order where you know that irrational long wick could appear – the price reversal is usually faster. The reward is even more exciting when trading derivatives with leverage.
Think about it!
Might have to go deeper into stoploss witch-hunting in another newsletter. Keep an eye.
This is beautiful. Thank you for the insigth