GETTING A PERFECT ENTRY

One of the best question traders always ask : How Do I get a perfect ENTRY?

A perfect entry, regardsless of long or short position, is something that we all desire as traders. Not only this will maximise our profit, but also minimise our risk in setting a minimum range for the position's Stop Loss.

I guess the best entry position is always at top (for selling) and bottom for buying. But of course, how do we know whether it's a top or bottom? In my adventure as a currency trader, I guess picking tops and fishing bottoms are the hardest thing to do indeed. Out of 10 attempts, I always wrong 80% of the time. Even when I got it right, I didn't have the guts to ride the profit as I just couldn't afford to see a winning trade turn to a loser, thus quitting a good potential trade earlier than I supposed to.

Hence, I believe the perfect answer to this perfect question is :

YOU MUST HAVE A SYSTEM IN TRADING & HAVE A DISCIPLINE TO STICK WITH THAT SYSTEM (as mentioned by Bob Prechter).

Why?

1. A system will provide you with signals whether the setup is good for entry.

2. A system will give you ideas on the overall trend PLUS the best way to exit.

3. A system will keep you organize and make a systematic approach in your trading.

4. A system will eliminate all the guess works.

5. A system will normally provide you with a good risk reward ratio for each of your trade.

6. A good system will boost your confidence as a trader.

7. A system will take out the emotional factor in your trading.

It doesn't have to be perfect though. A system with 50% accuracy is good enough to give you a consistent profit, provided you apply a proper risk reward ratio for your money management.

I believe making profit is easy with forex. It is making big profit (and retaining that profit) that remains as a challenge. At times, due to part time involvement in this trading arena, I always missed the chance to join a big trade since by the time I have the chance to watch the market, the breakouts has always moved 100 over pips and so on.

Though the trend is already there, but entering a trend right in the middle is not something that I like doing, unless of course later after it has gone through some retracements. Catching it just before it happen is always the best.