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  • Item Upon - Day Trading the Index Futures - How to Judge Good Entries

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    Entering on a pullback offers less dollar risk than chasing the market because you can place your hard stop on the other side of

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    QUESTION: If the SP futures fall through support and go straight down for another two points, and I want to get short, should I a.)enter immediately, b.) two points below support, or c.)should I wait for a pullback and then try to get short?

    You've got to be patient enough to wait for entries that have two things: first - a high probability of immediate gain, and second - a small potential for loss if the worst happens and your hard stop gets hit. This principle applies to all entries, and it's useful to think about it when you're trying to decide whether to enter on a pullback or a continuation of a move.

    Entering on a pullback offers less dollar risk than chasing the market because you can place your hard stop on the other side of s

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    .) two points below support, or c.)should I wait for a pullback and then try to get short?

    You've got to be patient enough to wait for entries that have two things: first - a high probability of immediate gain, and second - a small potential for loss if the worst happens and your hard stop gets hit. This principle applies to all entries, and it's useful to think about it when you're trying to decide whether to enter on a pullback or a continuation of a move.

    Entering on a pullback offers less dollar risk than chasing the market because you can place your hard stop on the other side of

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    at have two things: first - a high probability of immediate gain, and second - a small potential for loss if the worst happens and your hard stop gets hit. This principle applies to all entries, and it's useful to think about it when you're trying to decide whether to enter on a pullback or a continuation of a move.

    Entering on a pullback offers less dollar risk than chasing the market because you can place your hard stop on the other side of

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    hit. This principle applies to all entries, and it's useful to think about it when you're trying to decide whether to enter on a pullback or a continuation of a move.

    Entering on a pullback offers less dollar risk than chasing the market because you can place your hard stop on the other side of

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    tion of a move.

    Entering on a pullback offers less dollar risk than chasing the market because you can place your hard stop on the other side of support or resistance and risk only a point or two. (Of course, this doesn't mean you're going to hang around and let the market hit your hard stop if things go wrong.)

    Entering on a pullback also gives you a better chance of gaining a point or so in the first 30 to 60 seconds of the trade. This is important, though very few people seem to be talking about it, perhaps it's a well kept secret.

    I rarely (almost never) chase the market. Here's why. Usually, if you chase the market for your entry, you'll get filled about the same time the crowd's emotion is exhausted. The market will pull b

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