Entering position too early
and checking whether the paint is try. A few ticks that might help a bit:
Be aware of the general market conditions: are you planning to trade in the direction of existing trend? Are you trying to take advantage of a countertrend move? Is the market in a trading range? Is the market near resistance/support?
Then:
1) Know your trading style: are you entering an intraday position for a very short term trade that you will exit immediatly if the market goes against you? If so, you risk less if you mistime the entry. But you lose. Accept that sometimes you lose. If you cannot accept occational loss, you probably will miss some good entries on account of being afraid to enter at the right time, particularly, if you have a string of two or more losses behind you.
2) If it is a longer term trade, particularly, multiday trade, consider what are the risk vs. rewawrd. Are you trying to catch the exact top/bottom for few cents while risking that the change of the trend has not taken place yet? What is your reason to enter right now? What could happen (good/bad) if you wait for a bit longer?
And when trying to play trend changes which are the most dangerous: sit on your hands! When you first want to enter, ignore the feeling. Ignore it until you cannot any more be out of the markets, then walk away for a short while, and check your reasons why you want to enter now. What reason do you have for the trend to finish and reverse now? Write them down, so you can go back and analyse afterwards, particularly, if you turned out to be wrong.
It's all about getting better at this...
AI
