The Trading Blueprint - Mastering Market Entries 🎯
Sorry for the delay! Let's dive into today's key lesson on improving your market entries.
A well-planned entry can mean the difference between a winning and losing trade. Many traders focus on the exit, but if your entry is weak, you might never reach your target profit. Let’s break down how to sharpen your market entries and increase your edge.
🔹 1. Wait for Confluence—Not Just One Signal
Many traders jump in based on a single indicator, but the best entries come from a combination of factors:
✅ Price Action: Look for breakouts, retests, engulfing candles, or pin bars at key levels.
✅ Indicators: Supportive signals from RSI, MACD, or moving averages can confirm strength.
✅ Market Structure: Identify higher highs and higher lows in an uptrend, or vice versa in a downtrend.
Example: Instead of entering just because a resistance level is broken, wait for a retest or volume confirmation.
🔹 2. Adapt to Market Conditions
Your entry strategy must align with the market environment. Different conditions require different approaches:
📈 Trending Market: Enter on pullbacks to moving averages (e.g., 50 EMA) or Fibonacci retracements.
🔄 Ranging Market: Look for reversals at well-defined support and resistance levels.
💥 High Volatility: Enter with extra confirmation to avoid getting trapped in fake breakouts.
Understanding the market’s current state will prevent unnecessary losses.
🔹 3. Use Limit Orders for Better Fills
Instead of jumping in with market orders, refine your execution by using limit orders at optimal entry points.
🔹 Market orders often result in slippage, especially in fast-moving conditions.
🔹 Limit orders allow you to enter at a precise level, improving risk-to-reward ratios.
For example, if price breaks a resistance level, instead of entering immediately, place a limit order at the retest of that level.
🔹 4. Backtest & Review Your Best Entries
A trader who doesn’t track their progress is bound to repeat mistakes.
📊 Backtest your strategy by reviewing past price action to see how your entry method would have performed.
📓 Journal your trades and note which entry techniques consistently work best.
Over time, this will help you fine-tune your approach and improve your confidence in entering trades.
✅ Final Thoughts: Small Adjustments, Big Impact
Mastering entries takes time, but small refinements can make a massive difference. The key is patience, discipline, and consistency—don’t rush into trades, wait for the best setups, and always analyze your past entries to improve.
Happy trading, Pablo Torres.