Trading Tactic - How to Enter a Position with Momentum on Your Side
You have been watching this stock for weeks. It is setting up exactly as expected and you check it every day with eager anticipation of the stock finally falling into your strike zone. Finally that day comes and you decide that now is a good time to enter the position but how do you actually go about pulling the trigger? Is it just a roll of the dice in terms of timing and price?
Entering a position with market orders is a mistake that amateur investors make all to often. This is a mistake that I learned to avoid after watching it cost me money time and time again. Because of the fact that I am a technical trader, I expect stocks to bounce off (or at least hold) certain resistance levels. This was the case with FIZ as I mentioned in my last post. What I want to address now is how I went about entering that position and how this simple technique can save you time and time again.