Topic: Wait for the right set-up - page 7. (Read 1227 times)

That is why it's very important to learn first before venturing into trading, because knowledge is what separate a profitable traders from unprofitable trader, and  it's very essential to know how to manage your risk, because in trading, no matter how good you are, you will definitely encounter some losses at some point, but what keeps you profitable, it your risk to reward ratio, and your ability to manage your risk.

A very good and experience trader do not take anything less than 1-3 risk reward ratio, because it's just like you are risking 20 dollar on a single trade to make 60 dollar if it goes your way, so if you can win like 40% of the trade you took, then you will surely be a profitable traders, but if you are taking 1-1 or 1-2 risk reward ratio, you would need to win like 70% of your trade before you can be profitable, which is very difficult to achieve.

You know that the strategy that a trader uses in the cryptocurrency that we belong to is different. Others just copy, others are too lazy to study, so they only guess,
and others think that trading is just gambling, even though it really isn't.

So, if you are going to trade, you must have a basis, and you must also have a broad knowledge of trading. Just remember that knowing always beats the ignorant, or don't forget that.

This simple thing is actually what I also do in my daily trading. I don't always continue to place trading positions if I don't see momentum or the right time to place a position to start my trading. And everything must be done by starting with small analyzes as a warm-up and then looking for trading pairs that match the candles and charts that are formed and where to start entering. But before I decide to place a position and enter a trading pair, first I always check fundamentally whether the trading pair has any interesting news or an event that will or has already taken place. And then if it turns out there is an event that will take place then I will also assess how strong the hype can be created with a similar event. If everything shows a suitable moment to enter, then I determine the right position or price to take a position by carrying out technical analysis again. And at the right time trade orders will be filled and profits can begin to be seen. and sometimes to pick up our orders we also need small corrections in the market. And that is something that is most looked forward to. Because after a correction there will definitely be a reversal if technically, fundamentally and sentimentally the market has time to go up. So in essence even a day trader doesn't actually place a lot of trades in a short time. Most of the time we sometimes spend longer in analysis and wait for the right moment. Because if we just enter the market, we could continue to make profits in several positions and then run out again because of one position at the end. Which makes a trader feel frustrated in the end because they feel they have won before. But because of greed, sometimes they increase their capital when placing a position, so they have the potential to experience bigger losses if they lose or make a mistake in the analysis for the last position. And it would actually be better to take a break from trading and get into market monitoring mode. Instead of continuing to force trading when emotions start to dominate our trading decisions. Because usually I will stop trading if emotions start to interfere with my analysis or emotions start to interfere in decision making.

As you do go forward then you would really be eventually learn up the things on which you should really be gonna be able to learn on which it is a normal process because not everything that been stated or written up on textbooks would really be always precise on which just like been said or we do know that some of those learnings could really be acquired with real experience and this is something that you would really be learning to cope up or something that you do really need to learn up along the way. You should really be waiting up for the right spot or the right moment before you would really be able to make yourself having that position.
Just like the rest been saying that you cant just make yourself that put up a position without any basis or some analysis on which we do know that this is something that crucial.

I believe it depends on your strategy butt it's important that you manage your risk. You can trade a lot if you are a market maker, but if not, you are a swing trader. It's mostly dependent on what your goal is but if you were to trade, I believe in the long-term with the long trades, like you might be holding for a long time for a month, but when you profit, you really boom, you know?

The right setup should be waited and back test a lot so you would know if it's an effective strategy or not.

Losing your money in one trade seems more in the lines of margin trading or all that non-spot trading. In spot you at least have the opposite asset at hand to sell, even though its price may depreciate. Of course in spot trading we need to be careful when you are buying or selling which is the crux of this concept. If you buy at the wrong level you will have to hold that till the crossing over occurs so you can break even and then further in order to profit. You will be paying for your mistake with time.

With dummy trading and watching the older charts, one can get an idea about this. However trading is not for everyone and if this does not seem to work out, dont trade anymore.

Experienced traders have memorized which parts can provide good opportunities in each market situation. They can also experience things they never expected in the market even though the strategy they implemented was very good. The strategy used by the trader can have an influence on the results, but not all opportunities can be obtained on the chosen coin.

For me, knowing which coins to choose for trading is better because not all coins are likely to provide profits with the settings set as well as possible.

I think it's easier if we only think of being consistent. Trading is just like gambling, you analyze the data but it doesn't guarantee you a win, you win some and you lose some, that's it. But if you are good in managing your funds, and you have more good prediction than bad, then in the long run, you'll be profitable. I'm talking about day trading here as I think that's what you want to discuss about.

Long term and short term investment, this day trading belonged to the short term and honestly I find it more challenging that long term, but the moment you master your skills in trading, you should have a smooth ride.

Traders are actually aware to trade only when the right set-up is achieved, or when there is perfect opportunity to trade. However, not all traders are patient enough to wait for that to come, and majority are greedy to make quick profits. This is why majority of traders end up losing their trades, despite of their proven skills and strategies that work in trading.

Trading is not just a mental skill but an emotional skill as well. If you cannot timing your trades, because of lack of patience and discipline, then always anticipate losses afterwards.

Even though I agree with your post but it's not practically possible as this can only be followed by expert traders who are in the domain for long time and sometimes even they make the mistake of hurrying up. Patience is the key but it's not as easy as it sounds that's why most of the people fail. I see some people scalping through the market and earning good but just one bad trade put them in loss as it eats up the profit of scalping hence right set is important but really difficult to achive.

Its actually the basic but people do need to experience the worst first before they would really be making out some realizations. It would really be just that common or just that right that you would really be waiting up for some good entry point before you do buy. You cant really just that make yourself buy when the market is really that pumping or simply trying to get in on a huge green candle or simply its being overbought basing up with technicals on which you are really that putting up yourself on such risks on getting caught on the correction on which this is something that you should avoid in the first place. Dont make yourself that making trading positions on which you arent even sure that you are already that too late or early on the said situation. There should really be the right set up and preparatory when making up a position.

You cant just that make out a decision because you've been trying to catch up on making 6-7 trades a day or whatever targets that you are trying to achieve. Even on having a 1 good trading position
that could result into huge profits could be able to cover up those 6-7 trades that you are tending to make. So it does make a difference.

I have to agree with you that not all set ups that we trust can go our way, a good trader is actually that who handles his loss trade properly. But what the OP says and I inclined towards is the fact that you should trust your trading plan and do not FOMO into any trade. There are some traders that have their strategies and when they do the set up sometimes the trade is about to miss their entry and they most probably jump into it, this I think are the kind of people OP means. If as a trader you have a specific strategy that you have back tested on a pair and it works fine for it, stick to it and don’t jump in even if it is looking like a good set up to you. The best of traders they say follow their trading plan.


This type of traders are easily traders that usually task themselves to make certain amount of money either daily or weekly and when they fall short of it they enter set ups that do not have a better R:R just to meet up the quota. To me this is a bad strategy because you can’t always meet your target in trading, it’s is a directionaless thing and some days you will lose which should be acceptable

Another type of traders are those that do revenge trading trading, they will want to recover the money they lose on a certain trade back and they end up losing more by jumping on trades

Waiting until the perfect opportunity to make a profit is a quick way to get a loss that takes all your profits into a trade that you think will make you profitable. A good trader is not afraid of losing or starting a failed deal, but the sum of his trades is positive or the sum of every 100 trades and an increase in capital, and this does not mean that all 100 trades are successful or achieve gains.
good trading does not depend on time or golden opportunity, but rather on how he deals with loss.

Exactly, not all experienced or expert traders earn always in their trades sometimes they trade but also experiencing great loss or lose trades, and believe me traders are more on long term trading and not relying on short term trades because they know how much profit they can get from long term and they are more on maximizing the potential profit than getting small profit from short trades because they will only waste effort and time there, I also more on long term or to be specific day trading because I have a stable job so I cannot monitor my trade 24/7 so I let the market decide or my analysis decide wether I will earn or not, but of course I still look to my open trades sometimes but not monitoring it to the point that I may neglect my analysis and exit it right away, so I more on having faith or staying on what trade I open no matter what happens.

I think that's a very good point you just pondered. We have to wait for the right time of the market and it's very important as you mentioned. Proper skills for the market judgement is very important for one to have a clear picture of when to trade and how to trade.

I have seen people due to their negligence and greediness they've lost their months of profit in hours. If one can have complete control over the disabilities mentioned then he/she will surely be a successful trader.

You know it is easy to say wait for a good trade set up. Where the work is in being patient and it is the patience that beginners often lack. A friend went from taking a trading course to doing 5 live trades and guess what, he lost. Successful traders will only take one to three trades each day and they could even do less. I think that some trades are just not necessary, they just waste the trader's time which should have just been spent either doing nothing or engaging in some hobbies. Waiting for a good trade set is simply waiting or the right trading opportunities.

This will depend on the strategy that the trader is using. Traders that are using high leverage will see this a lot. Assuming a trader has $500 to trade, he can think of 10x leverage, thinking to earn $10 each from scaping. If the trade favors him, he will be winning $10 each. Let us say he has won 5 time which is $50. If he trade again the 6th time and the trade is not favoring him, he will think to leave the position open for a while and this might result in liquidation of the money used. But if using low leverage or no leverage at all, it can help against high risk trading.

 People actually don't know how important it is to wait for the right set-up, some traders think that the more you trade the more money you make which is very much unlikely, trading doesn't work like that, you might make a lot of money from 5 to 7 trades, and use just only one trade to lose everything including your initial magin.

But waiting for the right set-up gives you an edge in the market, when you trade only when you sees an opportunity, you will mostly comes out profitable, as long as you knows the craft a little, but probing the market every now and then will only make you lose money, because trading is more of patience and knowledge.