THE STAKES FOR SHARP ENTRY ARE TOO HIGH!!!
XAUUSD
I took total of 4 trades on Gold in the last 2 weeks. All of them hit my target TP.
Do I aim for sharp entry? Well I don't. Not anymore.
I used to chase sharp entry before, but now all I want is profit. Not perfect entry. The stakes for sharp entry are too high. Also, you need to stay focus all the time and mainly use limit orders to place your order. You might get stopped out multiple times before you finally catch the reversal edge or you might missed out some good trades as well.
As you can see all my past trades on gold are based on structure breakout. I do not aim for sharp entry, but I'm looking for confirmation. I wait for confirmation (aka structure breakout) then only I place my order at the market price.
Is waiting for confirmation performs better than trying to get sharp entry?
Don't be surprised, IT IS WAY BETTER!
Of course there are some opportunity costs waiting for confirmation. My SL is larger, my risk to reward ratio is lower (1 to 1 if I really have high confidence). But I'm still able to make 1:2, 1:3, or even 1:4 RRR. Another opportunity cost will be my entries are late.I do not catch the earliest reversal, I enter the market only after the momentum is picking up.
Another cool part trading with confirmation (my confirmation is structure breakout) is that I have more time to do other stuff. As I'm trading the 4H chart, I'm reducing my screen time and only look at the chart every 4hour and it took me less than 1 minute each pair to make market decision.
In summary, structure breakout is my confirmation & entry at the market after confirmation give me higher win rate while still able to maintain my RRR. I got more time to other stuff and really enjoy my life as a trader. I'm not that adventurous anymore to chase for sharp entry. Entry late, but still profit.
So my advice, make yourself wait a little bit longer when you want to trade. Be patience and wait for confirmation might be a short cut for you to become a profitable trader. :)
Hope you learn something from this article.
Enjoy, follow me & share this if you like it.