Wednesday, March 10, 2010

The Daily Note - A Moment in Time

When do you pull the trigger? It only takes a moment in time to do it, yet one thinks on that moment perhaps far too long. Yes, even a moment can be far too long. You've seen the set up, the breakout and the takeoff and you know to enter, you've been waiting and then it's too late. It's called a momentum play and it is more in the moment than any other play you can choose.

The best ones are the ones where you are ready for the moment. In order to be ready, you have to be prepared. If you are expecting a breakout, set up an entry to trigger near the max where you would enter, not the minimum, because the minimum can skip you by and you actually have a better advantage with the momentum picking you up and carrying you without a pullback or bounce.

Another way is to wait for the pullback or bounce. Watch for the opportunity after a stall and reverse. These are often more rewarding because the run can pick up exuberance from traders who, along with you, missed the initial opportunity and with the added players who got out too quickly the wave maybe stronger than the first one.

Of course the next moment in time is your exit. It needs equal attention and it's one that is dictated by the strength of the motion, the stalls and your stops. Never, ever forget your stops, because surely then you'll have a moment in time... lost.

Happy Trading, Living and Dancing

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