In this chapter you will learn two completely objective entry strategies, including the specific entry price and initial protective stop for all market conditions, plus the maximum position size for any trade. Objective entry strategies are a key to a successful trade plan. They will eliminate the emotion and indecisiveness once the trade decision is made. Knowing the maximum position size for any trade will be a key factor in your trading success.
So far you have learned the four factors of multiple time frame momentum, pattern, price, and time used to identify market conditions with a high probability outcome to consider a trade. This doesn't mean a trade should be entered every time these conditions are made. It just means there is a potential trade.
Now we set the specific conditions to execute the trade including the entry price and initial protective stop-loss. Most of the time a trade will be executed. However, sometimes the market will not react as anticipated and will not meet the trade execution conditions.
While there is some judgment involved to identify the best trade conditions based on what you have learned so far, the trade entry strategy is completely objective. Once the conditions are in place for a probable correction reversal or trend reversal, there is no more thinking, and no more judgments to be made. The entry strategy is objective.
In this chapter, you will learn just two specific entry strategies. Both are ...