Patience for Entry – So, now you have studied the charts – identified an high probability setup and jotted down your entry plan and Risk and Reward for the trade.
But for whatever reasons (fear of pulling the trigger, forgot to punch in the order, OR the move was so violent the limit order never got filled …) you could not enter into the trade. Now you are watching the trade and seems like an perfect setup, the trade would have been an grand success and would have made you rich overnight and what not (Dream On !!!).
But, it was not to happen so, what next .. don’t jump-in that’s crowd mentality. Go back to your charts and try to identify the next best entry point to enter – it can be retest of the break-out level which often happens to shake-out the weak hands (its termed as Breakout Pullback), or look for the next support that might come into play.
Wait patiently for an valid re-entry point with an justified risk reward for the trade.
trying to upload an recent chart of CIPLA as an example. Let me know your thoughts
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