There are many types of traders we need to consider this always while we are in the markets ourselves before opening a position/s.
- there are people who trade Trending markets
- Trading Trend pullback
- Trading breakouts in a Range
- Trading Range pullback
- Trading patterns
- Trading by volume
- Random trades - (usually beginner traders)
- Big players - Banks and other institutional traders
- And there is you and your strategy
This is the very reason why we need to trade smart instead of going against the wave.
In war, it is necessary to understand which side you are on, you cannot be on both sides, you cannot stay confused at war zone not knowing whom to attack. know whom you are fighting for and with whom you are fighting. this is very important.
in trading it is also necessary to know with whom you are trading with the small guys or the big players, what do I mean by that,
Consider the market as the sea and the candlestick chart as the pictorial representation of the waves that happen on the sea causing the movement or the flow of water.
Now in that sea, you are in a boat and your goal is to get to an island where there is food. Just imagine, I am making it as creative as possible. You can see that island, but how would you get there fast? of course, rowing your boat is an option but then if you row your boat against the current would that be easy?
Similarly in the markets to reach your target it is necessary to trade with the people who make the big waves just be on their side when they sell you sell when they buy you buy. this helps you to increase your probability to win the trade at a much higher pace.
When is the best time to buy?
Any person who trades short-term needs to have an edge, without it it is just gambling.
when it comes to me I have personally noticed that at every range there is a breakout and after every breakout, there is a pullback mostly 95% if the time it is true and after this pull back the prices surge or purge without turning back based upon the price cycle it is respectively.
My edge is that whenever there is a pullback after the breakout, wait for the next candle to close outside the range and if you have an increasing vol to back it up then you are good to go. Any position open in that candle will lead you to a winning trade.
Before trying this in a funded account, test this strategy in a demo account do multiple trades learn to pick your entry successfully, find your edge. Do this for at least three months, before shifting back to the funded account.
Remember confidence is important more than money, you can build confidence only by results in the demo account.
Preparation is the key. and with it Patience