Secretly setup in trading: Setup is the basis for conducting transactions (Unlimited Guide to Winning the Market Book 2) by VU BA LOI
English | 2022 | ISBN: N/A | ASIN: B0BBPKRNZ6 | 175 pages | EPUB | 3.13 Mb
English | 2022 | ISBN: N/A | ASIN: B0BBPKRNZ6 | 175 pages | EPUB | 3.13 Mb
A setup is the formation of conditions that must fully converge before entering an order. It helps determine when to enter. For many traders, their understanding of setup ends here. They ignore many other important roles of setup.
The conditions that determine the entry point must also give us a suitable exit point. A setup that gives us an entry signal must also give us a clear and logical stop loss. If we enter a trade at random, we can also just exit at random. For example, when entering a trade with a bullish setup, then the stop loss will be the point where we believe the price is negating, in other words, confirming the setup is no longer working, or even determining the direction of the price. wrong.
Setup opens the entry point and the stop loss point to exit the order. The exit point is the level where if the price touches it, it will confirm the high probability that our prediction is wrong. A reliable setup will mark a price level where there is a high probability that the price will continue to follow the market trend we anticipate. The quality of a high setup depends on whether the setup offers a nice stop loss.
Therefore, one of the important roles of the setup is to open a stop loss that helps limit the risk to what we can tolerate. Not in a hurry to think about how much profit the setup will bring us, but the setup is first a tool for us to control the risk of loss.
In addition, with the setup set up, we can also rely on certain price thresholds that it offers to analyze many other issues, such as when the setup expires, when the setup is successful or failure….
Price action is executed because human psychology dictates price changes. Psychology explains why past prices have an effect on future prices, and futures prices are sometimes formed in the same way as past prices.
Therefore, with each price pattern, we will begin to explain the psychology behind it. We understand the circumstances that cause traders to lose money, along with how traders often lose, and inexperienced people trade. Let's trade like the master of the game. You will be one of the recipients of money from losers.
As we all know, the psychology behind each price pattern is the basis for us to judge the quality of the trading opportunity. In fact, the meanings behind each trading pattern are more important than the outward appearance of the pattern.
Here’s a glimpse of what you’ll learn:
Can apply setup with price action trading across different markets.
So whether you’re a forex trader, day trader, stock trader, or cryptocurrency trader—you can adopt price action trading and improve your trading results.
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