How do you know that your trading strategy really works?
If it took you more than 2 seconds to answer this question, read on.
When you start trading a new strategy, this question can be challenging to answer. You might have trading rules but because you’re not sure about your edge, your confidence in the strategy will last until you get your first couple of losers.
All of a sudden, you question everything.
Did this really work to begin with? What if I was just lucky?
Let’s fix this.
Am I entering too early?
Is this a good enough signal to enter this trade?
If you’ve been trading for more than a week, you’ve probably asked yourself these questions multiple times. How do you accurately determine when to enter? While things like trade management, exit strategies and discipline are also big contributing factors towards your performance, picking a good entry point will increase your chances of having a winning trade on your hands.