Buy Low and Sell High: What does it mean?
Unless you are a brand new deal, you may have heard many times. It really is very important, so if you do not understand how to buy low and sell high, then this article will hopefully open your eyes and give you those "oh," moments. When I started to focus on this strategy as my first entry method, my most consistent profit began to emerge. Whichever strategy you currently use, and if you have been making money, then you may find some way to enter the market for a long time in critical low areas or into key high-market gaps.
If you are still with me and you do not understand what I want to reveal, then this may be the most important article you see when you learn to trade profitable. This is not important if you are trading days, daily, weekly or even monthly charts, as the prices are the same across all charts.
I will challenge you to see what happens on your chart for a few days or weeks, depending on the time frame you are likely to trade. Look at yourself if what I'm talking about is not easy to identify and trade. Once you know and know what to look for, it can be seen on almost any chart. If you choose this, you can even use weekly and monthly charts and trading options
Find your key support and resistance areas first, To help you easily see them. In many cases these areas will include double tops and double bottoms, but you may even see prices in those areas that have been repeated many times, and if so, then you can see what I am referring to when I say prices will Almost always rebound at these levels. You will also find that prices tend to reverse the trend in many of these same positions. Once you have found these important areas, you only need to wait for the price to arrive again where you want to buy or sell.
When you find a strong support or resistance area, look at it as a great opportunity to enter the market with the opportunity to buy low or sell high as it will be what you will do. In addition to following one of the most important rules in trading, you will also find that you can enter a relatively small security stay, so there is another advantage in getting there. I have gotten very good so I often buy these areas blindly, without any idea what price they will do when they arrive but if you can not do that then just wait for a trend bar in the direction of the entry and Enter just over that bar if long or just below it if the bar has been completed and closed after a short circuit.
Once you enter, your goal is to try and trade part of the mind, because even though prices may hesitate when they reach these important prices, they may not always move in the direction we want ,we think. Each market is different, so look at the markets you are closely traded on and study previous areas of support and resistance until you have a feeling that you can secure the scalp without staying in the transaction for too long. If the price usually bounces a dollar on your favorite stock, do not pay in full. Try and get half or three quarters of the bounce so you keep your winning percentage high in the scalp section of the deal. I like to quit a safe scalp, half my deal, and then I move my stop to my contract or share the rest, balance and tight hope that I can grab a bigger move. By using this strategy, it does not matter what happens after the scalp is closed, because the transaction is risk-free at this point. The worst thing that can happen is that the price will pull back, take out your rest and even stop the rest of the trade. However, you will make money from the scalp portion of your trade.
Many traders hate to see trading ranges because they feel they can not make money in these patterns, moves or trends. If you learn to understand the strong support and resistance of buying and selling is the easiest way to actually make money, you will start to like and look forward to these trading ranges like me. I often buy lows, sell highs on multiple trading ranges, and know that there is at least a small chance of a small bounce on both ends. If and I was wrong, my stop was very small and I lost very little, so I found that this way of trading gave me the best of both worlds, which is a very high percentage of winning rates and very small safe stops When I was wrong.
If you have not used this strategy to trade some volatile markets, especially when it comes to ES, YM and NQ futures, I highly recommend that you come up with some charts and check out for yourself. You'll be glad you did that and you might improve your trading results. Most importantly, you will force yourself to buy low and sell high, which is where real money is made in the trading market!