Keep entering the trade at the wrong time?

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Old Sep 6, 2012, 11:34pm   #1
 
craig5150's Avatar
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Keep entering the trade at the wrong time?

Hey everyone,

I'm new to the forum and have been
Day Trading about 3 weeks full time.

I am using a chart, Level II and time
and sales, real time data.

It seems I keep entering the trade just
as it retraces.

Example: I see a Green candle on an upswing.

Level two and time and sales start heating up.

I enter the trade and it starts to slide back
into a red candle, just after I get filled.

I end up hitting my stop in seconds and I am
bounced out of the trade.

Losing $20 to $30.

In most cases the stock ends up rising later a buck
or two after.

It seems I would be making more money as a
Swing Trader.

I don't want to add to my stops.

Any tips for timing an entrance a little better?

Thanks, for the help.

Craig
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Old Sep 6, 2012, 11:45pm   #2
NVP
 
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Re: Keep entering the trade at the wrong time?

you are trading retail prices instead of wholesale prices (look it up)

Either allow the price to retrace a little before entering or widen your stop loss and reduce $ per pip/point to accomodate it

if youre right the trade will move back into the direction you were anticipating .....

remember retail vs wholesale ....

and remember theres no such thing as a straight line in trading charts !

N
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Old Sep 6, 2012, 11:54pm   #3
 
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Re: Keep entering the trade at the wrong time?

craig5150 started this thread I guess I am just entering when it is not a clear uptrend.

Maybe I should learn more about Elliot Wave theory.

I think I wait too long to get in, and then I enter too
late.

What time frame do most people use for momentum
trading?

I am using a one minute chart.

Craig
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Old Sep 7, 2012, 12:01am   #4
Joined Sep 2008
Re: Keep entering the trade at the wrong time?

Quote:
Originally Posted by craig5150 View Post
I am using a one minute chart.

Craig
There's your major problem. Trying to determine a clear trend on a 1m chart and keeping a short stop loss is not beginner territory. There's nothing wrong with it but you need to learn in a slower environment. Try using a 5m or even 15m chart with a smaller position size until you get better at it.

Peter
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Old Sep 7, 2012, 1:17am   #5
Joined Aug 2012
Re: Keep entering the trade at the wrong time?

Quote:
Originally Posted by craig5150 View Post
I guess I am just entering when it is not a clear uptrend.

Maybe I should learn more about Elliot Wave theory.

I think I wait too long to get in, and then I enter too
late.

What time frame do most people use for momentum
trading?

I am using a one minute chart.

Craig
have you traded on a demo environment before?

3 weeks is still too early in the game.

as suggested, widen your stops and trade small for now... if you are comfortable trading one minute charts, you need to keep a wider perspective by simultaneously viewing higher timeframe charts ( one hour to daily and weekly).

if you want to time your entries better, you need to feel the rhythm of the stock which you are trading.
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Old Sep 7, 2012, 1:19am   #6
 
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Re: Keep entering the trade at the wrong time?

if you're new to this, my opinion is that you shouldn't be using anything lower than 1H TF
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Old Sep 7, 2012, 8:41am   #7
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Re: Keep entering the trade at the wrong time?

Hi craig5150,
Broadly speaking, I agree with the replies you've received that recommend switching to a longer timeframe. However, (and this is just my personal view), most traders would do much better to stop using any type of time based chart - of which candlesticks is the most popular. Unless time itself is a critical part of your methodology, time based charts tend to cause more problems than they solve. I might be wrong but, it sounds to me as if you're being mesmerized by individual candles which, for the most part, are largely meaningless. So, I suggest you stop trading real money, go back to demo and put up a Point and Figure chart. If you're not familiar with P&F and want something simpler to test out, use Renko instead. Both charting styles are ideal for day trading using tick data.
Tim.
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Old Sep 7, 2012, 9:21am   #8
Joined Jun 2011
Re: Keep entering the trade at the wrong time?

I think where you went wrong is you believe the guy on the other side of your trade is dumb and want to give you free money, or worst you don't believe there is anyone on the other side at all but in fact you are dealing with a magical money printing machine directly.

Once you realise you are dealing with someone extremely intelligent and rich on the other side, perhaps you will find a different way to play with him. But it's not going to be easy. He's very clever, and greedy. With all the money he made from everyone, he could also afford the most expensive computers that helps him play his hand quicker than anyone else. His computers also keep records of what price you paid, how much your are down, where your stops are, and historically at roughly what point you will sell out at a loss. How are you going to beat that, huh ?

Widening stops also increases the amounts our aforementioned clever friend will potentially take from you. It's quite a dilemma. Perhaps the best thing to do is to stop playing with him with such large sums. Then he can't take very much from you even if he tries very, very hard, and very, very quick. Once you are able to hold on to your own money, never mind about taking his money, then perhaps you can start thinking about how to go about becoming more clever than him. It's not going to be easy, because you will be up against every trick his piles of money can buy for him. One solution to this problem that is guaranteed to work is perhaps to not play with him altogether.

Last edited by BeginnerJoe; Sep 7, 2012 at 9:35am.
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