Timing in Trading: Entering the Market at the right time


6 April 2023 - 17:13

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Timing in trading is essential to make profitable trades: here’s how to enter the market at the right time.

Timing in Trading: Entering the Market at the right time

Being able to recognize the most appropriate timing to enter the market can make the difference in the course of trading.

Since this is short-term speculation - carried out with transactions of swing trading and/or momentum trading on average with a 5- 7 days – it is essential to know identify the right moment to buy and sell with a certain precision, while trying to maximize the risk/return ratio.

Timing in trading: entering the market at the right time

Identifying the right timing in trading is not at all simple in concrete terms: years of experience and many market operations are needed to forge the trader’s character and method. It must be reiterated, however, that timing in online trading is a key element to master. This doesn’t happen when investing for the long term (or at least it shouldn’t be), but timing is everything when trading.

In case you are interested in the world of trading and investments, you can view the offer of XTB, a one stop shop regulated broker (thousands of markets in a single app), recognized globally and fourth in the world by number of active customers. XTB allows you to access complete and free training, as well as benefit from a high level of security thanks to the segregation of funds from those of the company and regulation by the most important financial regulatory institutions.

Being able to constantly identify excellent trades and always make big profits is certainly a chimera. There will be a lot of defeats and monetary losses to face (which could dangerously undermine short and long-term emotionality without a prompt reaction and solid faith in one’s method). However, since trading is an art, this activity must be approached as such and therefore not everyone will be able to succeed in the same way.

Understanding, for example, when exceptional rallies can really start is not easy, but it is possible. We recommend taking a look at the long consolidation phases on FX (or other tradable instruments from a trading perspective, as long as they are liquid enough) and wait for the breakout explosive of the high or low end of the range. At that point entry will be a matter of “style”: immediate entry or waiting for a pullback.

3 tips to enter the market at the right time

What really matters in finding the perfect timing for trading is:

  1. have clear ideas: it is essential to know how trend retracements and breakouts work in order to identify entry and exit opportunities in a given trade;
  2. a pre-established plan: nothing in a profitable trading activity should be left to chance. In fact, it is necessary to study, identify and monitor the assets on which to wait for the right moment to operate, already identifying the possible stop loss and take profit levels;
  3. a good risk management system: finally, following an excellent money management system has the great merit, potentially, of limiting losses and maximize profits.

Not all donuts will come out with a hole: it will be necessary to take both those that appear perfect right away, and those that leave some questions. Over time, intuition will also play a key role. Maybe that’s the beauty of trading. But, we repeat: it is not a "game" for everyone and it is essential to choose a safe and reliable broker to support us in our business.

Finally, it is often the broker chosen to carry out one’s trading activity that is decisive: opting for an intermediary who allows you to access complete and free training, as well as a whole series of other advantages, can be very useful for learning how to recognize the best moments to operate:

Original article published on Money.it Italy 2023-04-05 09:57:00. Original title: Timing nel trading: entrare nel mercato al momento giusto

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