Last week was a bit of a mixed bag.
Some calls played out cleanly, others partially, a few were invalidated, and we had a couple of missed entries that later moved in our favor.
$SKYAI and $TUT , for example, pumped straight to TP3 without triggering our entries.
If you noticed, we rarely jump into trades directly at CMP. Instead, we set limit orders on support zones. There's a logic behind that.
Entering on a pullback lets us set a stop loss with breathing room. If we enter at CMP after a big move, we risk buying right into a resistance zone where early buyers may take profits. So, an ordinary dip can take us out before the real move happens.
So, yes, we would have caught those moves if we had entered at CMP, but we prioritize capital protection over gains. That's the trade-off.
The same logic applies to our shorts. We usually have two entry levels:
- Relief bounce into resistance: This is always the ideal entry because it gives us the tightest stop loss and the best risk-to-reward ratio. Since there's a high chance price will bounce before dumping further, waiting for that pullback keeps us from jumping in at current market price and sitting heavy in drawdown.
- Breakdown below support: If price skips the bounce and keeps falling, this gives us another chance to catch the move.
Hopefully, this clears up the logic behind our entries.
Now, let’s go get some clean setups this week.
But before then, what's your read on $SKYAI ?
Building up for another leg, or done for now?
#NFA
#DYOR
Some calls played out cleanly, others partially, a few were invalidated, and we had a couple of missed entries that later moved in our favor.
$SKYAI and $TUT , for example, pumped straight to TP3 without triggering our entries.
If you noticed, we rarely jump into trades directly at CMP. Instead, we set limit orders on support zones. There's a logic behind that.
Entering on a pullback lets us set a stop loss with breathing room. If we enter at CMP after a big move, we risk buying right into a resistance zone where early buyers may take profits. So, an ordinary dip can take us out before the real move happens.
So, yes, we would have caught those moves if we had entered at CMP, but we prioritize capital protection over gains. That's the trade-off.
The same logic applies to our shorts. We usually have two entry levels:
- Relief bounce into resistance: This is always the ideal entry because it gives us the tightest stop loss and the best risk-to-reward ratio. Since there's a high chance price will bounce before dumping further, waiting for that pullback keeps us from jumping in at current market price and sitting heavy in drawdown.
- Breakdown below support: If price skips the bounce and keeps falling, this gives us another chance to catch the move.
Hopefully, this clears up the logic behind our entries.
Now, let’s go get some clean setups this week.
But before then, what's your read on $SKYAI ?
Building up for another leg, or done for now?
#NFA
#DYOR