1. Chasing is important... that's what you do with "congestion breakouts". 2. If chasing, you want to be "early". 3. "Chasing late" is more hazardous. 4. When chasing, you're giving the "benefit of the doubt to directional psycho"... that the move in your play will continue long enough for you to make a profit. 5. You can make ANY play... even ones that might seem dumb and risky at first... so long as you exercise reasonable stops.
FWIW some of points: Chasing mentality is a cousin of trying to exit with maximum profits. Personal preference is to go LMT to MKT because I can stay in syncc with the movement rhythm, and that is WAY more important to me. Rare for me. Consider if the order is short of the fill, it is the wrong order. It should be set for a high probability fill. Certainty of execution is more important than price, imo. "stay inside the body, and not in the wick". Retail trading has delays, truthfully 1-2 seconds RT to your screen (Submit to confirmation), adding 1-3 seconds deliberating on "where to fill", "will it fill", "why won't it fill", "adjust to fill", can be the difference between smooth trading and janky trading. I like to get my fills "done", and to leave a lot on the table, entry and exit. I swap certainty of execution for ticks. In fact I like to leave over 200% to 300%+ of the PL on the table in a day. I consider that an important metric.
I’d rather wait for a pullback to a breakout area instead of chasing. That way, even if I’m wrong, it’s still a low-risk bet.
I trade fib retracements, if my first trade doesn't {one position} does not retrace ,to target then i take a second position with a far more confident trade. but never ever chase. The market has bigger pockets than i do.
I ain't talking about whether price will or will nConsider it this way. 1) There is already a STRONG trend in progress. 2) You plan to get in at the pullback, so you place your bid a few ticks above the support. 3) Price does retrace, but it stops just a few ticks above your entry and reverses (so you miss the trade). 4) Once it reverses, it reverses hard. It instantly rips higher by at least a few points (for example, 5 points for ES or $1 or more for stocks). 5) You intuitively know that it's not coming back down. 6) knowing that, SHOULD YOU CHASE IT OR NOT?
I think you should only view it from opportunity cost stand point If you have high opportunity cost, you chase the hell out of it since your R:R means that your few trades make your year. If you're scalping all day, hell no, just let it go and wait for the next one.