Mastering the Art of Timing in Trading

Understanding the Crucial Role of Timing Trades

Does Trade Timing Matter?

They say timing is everything:

I’d say that’s pretty accurate. A late entry can change the dynamics of the trade dramatically.

  • The stop has to be wider, which impacts the RvR of the trade.
  • The trade is more likely to take some heat, potentially putting you under pressure.
  • It can also make you feel a sense of guilt, thinking you’ve chased the trade. Which can ignite all sorts of emotions and unwanted actions!
In other words, yes timing does matter. From both the operational perspective of the trade and from the mindset aspect.
Today think ‘where is the best possible place to express this trade idea?’ and then let price come to you.
Too often as traders, we see a pattern come up with a trade idea and feel the urge to take that trade right now at the market. Ticket open, click, order filled. But what if you waited just a bit? What if you could just hang on for a better price?
Sure the market could go without you, but just waiting for a while and using the market’s short-term noise to your advantage can supercharge your discipline and performance. You’ll feel more in control, and your average RvR will thank you for it…

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The Market Wizard

Linda Raschke is a widely respected trader who started out as an equity options market maker in the early 1980s. She has held positions as head trader for a number of hedge funds and is featured in Jack Schwager’s book ‘The Market Wizard.’ In a recent interview with Pepperstone, she shared her insights on how traders can keep up with changes in the market, adapt to different market environments, and capture intraday volatility and range expansion.