Always Check For Strength & Momentum Of The Trend
Not every trade placed is going to be a hit. Many times you’ve to lose. Consistent success as a profitable trader comes from having the right edge after betting on the proper script.
If your analysis is correct and you’ve identified the trend, why not crosscheck for the movement’s strength and momentum?
Many times due to fear of missing out, we forget to check the following variables:
- Whether the stock has the strength to continue the trend or not.
- Whether it has enough momentum to reach our exit point in the desired time.
Suppose a stock is in an uptrend, and you’ve identified the potential to move, but it’s moving like a tortoise.
If the buyers have less or no interest in paying higher prices for purchase, it’s destined to go downwards or sideways, and even if it moved in your favor, the movement would be slow, and it will take a long time to reach your exit point.
Before entry, please pay enough attention to the trend’s strengths and momentum. It will help you leave the entries unattended, potentially slowing your profits.