The Art Of Re Entry – Directly Into Profit

Often “re-entry”  into a trade where you’ve already taken profits, can be a little tricky. Questions arise such as “gees – is this move over already “? or “man…..not sure this is the right level, perhaps it’s gonna pullback a little further “.

Aside from years of experience , practice and application, as well a fine tuned short-term trade technology / indicator – there really is no easy answer.

If you’ve been viewing charts for as long as I have, and enjoy the “geometry and math” that goes along with it- often these little “areas for re-entry” just come jumping off the screen.

It takes time, and it takes a considerable amount of trial and error in order to hone “some kind of strategy” that gives you a tiny glimmer of hope – in navigating the short-term time frames / noise that goes along with them.

A couple of other hints:

  • I don’t really believe there is much need to get any smaller than the 1H chart (coupled with the 15 minute chart).
  • If you consider that a 5 minute chart can move from overbought to oversold every couple of hours or less – there is really no solid indication as to “what level to enter” as…it’s really just noise.
  • With whatever technical indicators you use ( RSI, MACD, Bollinger Bands, Stocs , MA Crosses ) consider placing orders “above / below” current price action when your signal is met – and allow the price to “move towards you” as further confirmation.
  • Take the time to place several smaller orders ( in the direction of the original trade ) and let momentum ( if in fact you are correct ) pick up your orders “as price moves towards you”.
  • Smile and laugh when you get it completely wrong (and price “shoots off” in the opposite direction) as  – you don’t have a position! You’ve done something right!

With these simple things in mind, get back to the charts, consider my tweet and subsequent “re-entry across the board”.

See if you find anything useful as…..every single trade entered this morning has moved directly into profit.

8 Responses

  1. JM November 5, 2013 / 9:33 am

    Thanks again for the tips Kong. So you’ve played some nice USD shorts today?

    • Forex Kong November 5, 2013 / 10:18 am

      USD longs JM….long.

      so short pairs EUR/USD as well GBP/USD…

      long pairs like USD/CAD as well USD/CHF etc…..

      Interday volatility has em bobbin around closer to break even now.

      • Jason November 5, 2013 / 11:46 am

        Surely sir you must the joking… That long-term TL from July 8th confluencing with the Aug high did not prompt you to pull the trigger on a picture perfect E/U long? You fundamental wacko, you… *grin*

        • Forex Kong November 5, 2013 / 11:53 am

          He he he…..check the entries today my friend.

          How come I’m in profit across the board?

          Cuz I’ve been long USD for weeks now.

          Go man go – nice seein you here at the blog!

      • Jason November 5, 2013 / 12:10 pm

        Good to be here! You are posting entries? I had no idea. But where?

        • Forex Kong November 5, 2013 / 12:20 pm

          I generally tweet entries and “occasionally” post full on here at the blog.

          You can dig back / search for the odd “trade alert” post here as well twitter.

          I’ts nothing formal as I generally don’t just “give away the farm”.

  2. brosbhos November 5, 2013 / 5:14 pm

    “If you consider that a 5 minute chart can move from overbought to oversold every couple of hours or less – there is really no solid indication as to “what level to enter” as…it’s really just noise.
    With whatever technical indicators you use ( RSI, MACD, Bollinger Bands, Stocs , MA Crosses ) consider placing orders “above / below” current price action when your signal is met – and allow the price to “move towards you” as further confirmation.
    Take the time to place several smaller orders ( in the direction of the original trade ) and let momentum ( if in fact you are correct ) pick up your orders “as price moves towards you”.
    Smile and laugh when you get it completely wrong (and price “shoots off” in the opposite direction) as – you don’t have a position! You’ve done something right!”
    Words of wisdom… Words of wisdom my friend. Thanks Kong!

    • Forex Kong November 5, 2013 / 5:35 pm

      Thanks man.

      Hopeing to save the odd fellow from spending half a lifetime ( as it originally felt like to me ) trying to apply math / technique to these smaller time frames.

      I have use for the 5 minute at times, but generally plan around the old 1H which in terms of forex moves – is still very small / micro, as the moves t-a-a-a-a-k-e- w-e-e-e-e-e-e-k-s-s-s- t-o-o-o- f-f-i-i-n-n-a-a-l-l-y-y- turn!

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