Time Frame Matters on Entry from Themes Like Risk Trends to GBPNZD
- Entry is a vital part of the life cycle and proper execution of trades
- A fixation on the 'perfect entry' can lead to poorly constructed trades and a bout of 'gun-shyness'
- We discuss critical entry considerations for the big picture 'risk trends' theme and discrete GBPNZD
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Frequently, trading instruction suggests that after identifying an opportune trade setup; you lower the time frame to establish entry. However, along with entry comes: stops and targets; timing and risk-reward considerations among other critical aspects of the trade. If the setup was founded on the conditions read in the higher time-frame charts and fundamentals, changing focus between idea and execution can conflict with the viability of the trade. We discuss how over-pliability with our entry criteria can immediately undermine our setups and frequently contribute to a sense of apprehension in taking setups as they appear in pursuit of the 'perfect entry'. We discuss this concept in the context of trading the larger market-wide theme of 'risk aversion' as well as individual pairs like GBPNZD in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.