2Bull Forex Blog

You have read it in text books and seen it in books but “buy low sell high” is NOT a good way to make money trading there is a better way – Let’s look at a better way of market timing.

It is actually “Buy high sell higher”

Why is it better? Let’s look at this in more detail.

Get the odds in your favour

Quite simply you put the odds in your favour more this way and you let market action tell you when to get in the trade rather than imposing your own view point.

There is an old saying in financial circles “a bottom picker becomes a cotton picker” and the reason for this is most times a price is weak it gets weaker.

Don’t guess entry wait for confirmation

Don’t with market timing try and anticipate - wait for confirmation.

For example, you see the price fall to a critical level of support - don’t just buy, use a momentum indicator to show an upswing in price and CONFIRM the bottom.

This is important!

It shows support has been tested, held and momentum is moving to the upside, now its time to get in.

Of course, you have missed a bit of the move but that doesn’t matter, this way of trading will make you money more times than it losses and puts the odds heavily in your favour.

The best indicator to time entry is the stochastic indicator; I am constantly surprised by how little mention this indicator gets.

It is simply the ultimate indicator for timing market entry. There is not enough room in this article to go into the fantastic benefits of using it check out our other articles and you will see why we love it.

Consider this fact

Many people see a break of important resistance from a market high.

What do they do?

Sit back and think I had better wait for it to come to a lower price level then get on board.

What happens?

The price doesn’t pull back and the market goes on to be one of the biggest moves of the year.

Fact: Many of the biggest price trends in history have started from a break of critical highs or lows.

Rather than sit back and wait if the price is confirmed by stochastics (or any other momentum indicators you are using) get on board.

Sure you have missed a bit of the move, but odds are there is plenty more to come.

The secret of market timing is not to try and anticipate, its to wait for confirmation.

Most traders can’t do this and just like the bottom picker becomes a cotton picker they are destined for a trading history of failure.

Don’t make the same mistake use the correct market timing to get the odds and profits on your side and make big consistent profits.