Low Risk Entries

Here is a good article on taking low risk entry trades.

http://www.tradingacademy.com/lessons/20090414/eminis_article.htm

In my opinion, this is what make you or break you as a trader or investor. Having low risk entries with high reward potential. This incorporates your entries, exits, money management, and psychology which are all equally important in my opinion. When you have a trading plan that allows for low risk/high reward trades you will make it. Losses will be small and rewards will be big.

Often we hear new traders are looking for the perfect strategy, and jumping from strategy to strategy when one fails them. I think there is nothing wrong with trying out different strategies because you gotta find what works for you, but not all strategies are good and not all give you low risk trades.

What is low risk entry? Majority of the time we hear that it's these swing points where price reversed when there were no more buyers or no more sellers. Or strong support and resistance levels that might or might not be swing points. And you can place your stop at a point near entry where you believe price will not return to. If it does then your lost is small. So how does this apply to breakouts, momentum trading, fib trading, VSA, cross overs, etc..? Well, the research continues.

Happy Trading