If you watch our YouTube videos and have seen the trade example video I posted on Thursday April 9, 2020, then you have already seen this video. I wanted to post it to the website as well with a few comments for future easy reference. If you have already seen the video, it might be worth watching a second time, but I did not want to waste people’s time that have already seen it. The additional commentary here is likely worth the read either way.
I demonstrate a 2nd entry short trade here, but it is also a double test entry, with prices testing a previous high point twice more before the down trend resumes and prices push lower again. There are two main points this video attempts to address.
Point one being that you should not fall for YouTube videos where Internet Marketers post trading videos that make this look simple. Promises of an easy $500 a day are just that, empty promises. As you will see in my video, it looks very simple here too. Trust me when I tell you that it is not simple, nor is it easy finding these entry points. It takes a lot of experience and practice while also knowing what to look for when entering a trade. You can not buy a price action manual or a price action book and read it once or twice and start making money in a week or two or even a few months. It just does not work like that. If it were truly that easy, those guys would be busy trading every day.
The second point that I try and make in this video is that you must be patient while you wait for good entries to set up for you. Most of your good set ups will occur at the “key entry points.” Where are the key entry points though? Those are the important support and resistance areas, both horizontal and sloped. Trend lines are nothing more than sloping support and resistance lines, so keep that in mind. The 21 EMA will also act as important support and resistance while helping you to know if the market is trending up, trending down or if prices are simply flat and going sideways.
Once you know how to find the key entry points, you then simply wait for prices to reach them and give you a proper set up to enter. Sometimes prices reach the key entry points, but do not give you a proper set up, so you do not enter just because prices are at the correct locations. You must then wait on a set up. You can not just scan the market on every bar looking for an entry. Doing this is futile, but this is how most inexperienced traders actually trade, and it is exactly why most blow their trading accounts out in short order.
A good trader is like a predator. He does not chase trades or run all over the chart looking for entries. A good trader sits patiently waiting on the set up to come to him while he lays silently in wait at the easy places to gain an advantage. Once his prey arrives, he still waits for the right moment to pounce, which is a good set up. If anything different happens, he continues to wait. He may have to move to a new location, but he always lays in wait for the perfect opportunity, and because the trader is a patient predator, he rarely misses out when he does attack or take his trades.
In conclusion, trading is not easy, so do not fall for internet marketing schemes that promise easy riches. This is not easier than any other profession that takes years to master. Remember the key entry points and wait on the easy trades to come to you. Think like a predator and most importantly, act like one. I hope you enjoy the video and that this helps you to better understand how we enter trades.