Why Is The Obvious Not So Obvious?

Discussion in 'Risk Management' started by nysestocks, Jan 25, 2009.

  1. What would constitute the perfect entry? It was alluded to earlier by Mr Ed.

    1. price moves in your favour right from the get go
    2. you can put a very tight stop behind it, without getting stopped out, making the risk as low as possible

    If there was a way to identify such entries, with a high degree of accuracy, then it ought to be possible to reverse engineer the selection process.

    It should be obvious, by looking at historical charts, where these entries occur. ;)
     
    #7141     May 13, 2021
  2. odlareg

    odlareg

    M3, I know what the coloured lines are. (if other readers don't, here is a hint: They never cross) Though, I could not make it work advantageously.

    Maybe I ought to give it another thought. Should I?

    GO
     
    Last edited: May 13, 2021
    #7142     May 13, 2021
  3. It dropped 20 points below his low risk entry (unless he suggests it actually was a short), so not sure if you should. :)

    upload_2021-5-13_11-34-21.png
     
    #7143     May 13, 2021
  4. odlareg

    odlareg

    So, the question is, is the risk even lower now? What do you think?

    GO
     
    Last edited: May 13, 2021
    #7144     May 13, 2021
  5. The risk for what exactly?
     
    #7145     May 13, 2021
  6. Buying swings lows. Selling swing highs. Validly recognizing them in real time is a different matter, though.
     
    #7146     May 13, 2021
  7. Obviously to capture the entire move, you'd need to buy at the point of the swing low.

    But you can't possibly know it's a real swing low, as opposed to a fake, until it's already gone up quite a bit.

    It's all very frustrating. :D
     
    #7147     May 13, 2021
  8. odlareg

    odlareg

    Not to speak about getting in.

    GO
     
    #7148     May 13, 2021
  9. odlareg

    odlareg

    "The" risk in trading. It cannot be a crashing plane, or a mad dog :)

    GO
     
    #7149     May 13, 2021
  10. Well, to be precise then. Did you refer to a low risk long entry or a low risk short entry?

    I know nothing, so I don't think my opinion matters or is of any interest to anyone. However, since you ask, I'd say that for a low risk long entry it's still a tad too early, unless you're looking for a scalp.

    4000/4009.
     
    #7150     May 13, 2021