When To Take The Second Entry
It’s probably one of the most important
points that I can emphasize…the second entry. For some traders, this
represents the biggest challenge in succeeding consistently as a daytrader.
Depending on how thick-skinned you are, the emotional baggage that one faces can
loom larger than the actual dollar amount lost. The stock has already ‘done us
wrong’ after our carefully planned attack, so why should we give it a second
chance? Because if the edge still exists, then the only way to change that edge
into real cash over the long haul is by being consistent with one’s
methodology.
An example of entering twice when ‘your edge’ is
present is shown below. Personally, I wasn’t watching the issue as the first
1,2,3 reversal pattern setup, and to be quite frank, today’s trade was keeping
yours truly in ‘low profile mode’, as I considered the current environment not
very ‘user friendly.’ But, the moral of the story is this: Depending on how you
perceive edge, the trade based on price action and technical supports might very
well have been taken not once, as written up, but twice.
12:56:56
Intraday
Setup Alert
Bisys Group (BSG)
is down 2.83 at 16.67. The stock is off in today’s trade due to an earnings
release. Intraday action has the stock forming a potential 1,2,3
or double bottom, at the daily chart 62% Fibonacci retracement level from the
February lows. Currently, we are waiting for a 3 point pivot to form, for
possible long reversal plays out of the intraday pattern.
Only time will tell of course, but hopefully this
won’t be one of those ‘edgy’ situations where it becomes a ‘three strikes you’re
out’ type of trading day.