|
Quote: |
|
 |
|
|
... and trading should not take place on the "confirmation" arena but radder on the "anticipation" one... |
|
|
|
|
Walter, I totally agree with this. Although confirmation reduces risk, it also usually results in much of the opportunity passing the trader by. It always comes down to a trade-off between risk and reward. But in trading, I think it would be tough to be profitable in the long run if one requires too much confirmation before entering a trade. As you pointed out, key areas are excellent for anticipating trades. Assuming the risk/reward (i.e., entry and stop loss placement) is good, a trader should just enter the trade near a key area and then monitor the trade. A trader can then look for confirmation
while they are in a trade, otherwise they can simply exit the trade for a small loss. One can always re-enter if the opportunity still exists. Sometimes too much emphasis is placed on the entry and not on the trading itself when one is actually in a trade. This is the way I trade too, so I'm looking forward to this thread.