The Core and Key of Trading Waiting
Trading Secrets and Key to Waiting:
Everyone knows a secret in trading, which is the word 'wait', but not everyone knows what to wait for. Only by waiting with purpose can one defeat over 99% of people and become a winner.
Five Sentences of Waiting Mantra:
Here are 5 sentences of the waiting mantra, which you can memorize in 1 minute after understanding, and learn what to wait for.
For Trends: Wait for pullbacks, after a sharp rise wait for the rise to stop, after the rise stops wait for a pullback to a key position to enter.
For Fluctuations: Wait for high and low points, look to the left for nearby highs and lows, a real high with a drop in the entity is a trap for bullish traders, and vice versa for bearish traders.
For Reversals: Wait for repeated surges with small increases (this is real growth).
For Breakouts: Wait for a second retest; a sudden drop with high volume indicates a sell-off.
Key Cognitive Correction: Different trading systems have different key positions; beginners often mistakenly identify resistance levels as key positions. The probability of a breakout or reversal is 50:50, and during fluctuations at resistance levels, one is easily caught in a double whammy (profits can't be held, losses are stubbornly held leading to liquidation).
Resistance levels, support levels, and wave AB points are for exiting rather than entering, as the main players understand resistance levels better and will wait for retail traders to 'fall into the trap' at those levels.
