Sunday, April 20, 2014

Breakouts stock, forex, futures trading

Trading breakouts can be high risk, high stress, low reward, and low probability or this type of trading can be low risk, low stress, high reward, and high probability. The difference lies in when you enter into this type of position.  A important way to making these work that is beyond to learn how to read and understand charts: When taking any buy or sell entries in stocks or any other market, make sure you know exactly where price is with regard to the larger time frame supply  demand curve.
No matter what you trade Stocks, Futures, Forex, and Options, understand that behind all the candles on your charts in all these markets are traders and their emotions. Many of the traders will fall for the emotional breakout trading traps while other traders will make money from them. Thus instead of entering the market on the initial move higher or lower from a level, you should trade on the first pullback into the fresh supply or demand level. This is one of the most common mistakes most traders and investors make.
Breakouts stock, forex, futures