There is an art to pulling the trigger that futures traders must learn if they are to achieve success. Setting up and learning your system, studying and knowing the market, reviewing your charts and watching your indicators — all these important elements of futures trading come together in that critical moment when you pull the trigger.
What do we mean when we say, pulling the trigger? It’s trader talk for act. It’s the ability to put into action what your indicators are telling you, all you’ve learned about trading, and what you know from studying the market. The tremendous preparation that goes into becoming a successful futures trader is all for naught if you can’t act. Futures trading is all about pulling the trigger. If you don’t play, you can’t win. And futures traders play to win!
The savvy futures trader knows when to pull the trigger. Acting precipitously won’t get you anywhere. You pull the trigger when your chart indicators hit — generally based on the one or three-minute stochastics. When you pull the trigger, there are three ways to time your entry, or aim the bullet. The timing you choose has a lot to do with your risk tolerance.
- Early entry involves some wiggle. You balance the risk of the wiggle against greater potential gains. You want to time an early entry as close as possible to an exhaustion point and just ahead of a reversal. Since you’ll be going against the crowd at the start, expect an early entry to move away from you initially. You can mitigate the risk of an early entry with smaller trades. Early entry generally gives you the greatest possibility for gain.
- Enter in a positive position right at the moment of greatest impact and you’ve hit the sweet spot. The window for this entry is exceedingly small so you have to be on your toes to catch an entry at the sweet spot.
- Late entry carries the greatest risk. Made at exhaustion levels, a late entry can reverse fast and is for those searching for extended leandowns to make a last-ditch push. However, a critical make or break scenario can trigger a profitable late entry. As a rule of thumb, you should limit late entries. Late entries come nearly at the point of reversal. When you enter late, you gamble that the reversal will come later rather than sooner — a risky venture.
There are critical charting indicators that can be used to find the most lucrative entry point and tell you when to profitably pull the trigger. In my Futures Secrets Trading System course, I show you how to set up your system, develop your charts and recognize the indicators that tell you when to most profitably make your entry. I show you everything you need to know so that you can pull the trigger with confidence.
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