Timing the Stock Market: The Only Guide You'll Ever Need
GPSM | Will Bell | September 14th, 2023
In this training guide, you will discover the most effective Trading Entry Strategies for better market timing and greater profits.
By the end of this article, you'll have learned the skills needed to better time the market, the best entry levels for stocks, the ultimate trade entry checklist, how to improve trade entry, and easy-to-use Trade Entry Systems used by smart traders.
You're at the mercy of the market if you don't have a good Trade Entry System guys...
...how you enter your trade is one of the most important skill to master because it allows you to profit more against market forces.
Remember that if you get a good entry on your trade, even if the market reverses, you can still exit with a small profit or a small loss.
In this case, your trade entry is your unsung competitive advantage!
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Let's get started and see what the best entry-level stocks are, as well as the ultimate trade entry checklist for better market timing.
What Are The Best Entry Prices For Traders?
You don't want to enter a stock position too early because you'll have to take some heat, and accept that the market will go against you, and possibly hit your stop loss.
At the same time, you don't want to enter the stock too late, when the price has already moved and you're chasing the market.
The sweet entry point is also not in the center.
However, the best time to enter a trade is near the low (high) or just before the market is about to take off.
If your trade entries are near the low (high) end of the range, then:
1. You'll be making more money on your trade.
2. And, secondly, you can increase the size of our position, thereby increasing the potential profit.
This trade entry checklist will propel your trading to new heights.
The 5 Point "Don't Be Fooled By The Markets" All-Inclusive Trade Entry Checklist Below
Here are the 5 Trade Entry Checklists to improve your stock pricing entries:
1. Determine your entry trigger.
2. Know where to exit if you make a bad trade.
3. Determine whether you're trading from a value area.
4. Understand your profit margin which is commonly known by winning traders as your risk-reward ratio.
5. Determine whether you are trading with the Market Trend or against the Market Trend.
When you follow these five simple checklist rules... it will change the way you trade.
Only accept a Trade Entry if it passes the checklist I have just given to you.
Note When You Trade At Any Level The Same Entry Checklist Can Be Safely Used (Stocks, Cryptocurrencies, Options, Futures, etc.).
Knowing your Entry Trigger is probably the best entry to any stock.
Why?...
... Because you must understand why you are entering your trade.
If you base your Entry Strategy on your emotions, you're not approaching the market correctly or minding risk.
The reason behind this type of logic is...
...if you simply believe the stock market is rising and enter a trade, you are gambling, not trading.
If you want to trade like a business, you must have detailed reasoning behind each trade.
Why Is The Trade Entry Price And Strategy So Important?
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It is critical that your entry-level stock trading is flawless.
However, the stock trading community may be divided about the true role of stock trading entry strategies and why they are important.
Many online stock traders would argue that other factors, such as:
1. Risk Management is more critical than Entry Strategy.
2. Exit Strategies are more important than Entry Strategies.
3. The trade's risk-reward ratio is more important than the Entry Strategy.
4. The size of the cash position is more important than the Entry Strategy.
While all of these are elements of a good stock trading strategy, most novice traders will not lose money because their exit strategy is off or because they use the incorrect position size.
The Following Are The Leading Destroyers Of Brokerage Accounts:
• Bad timing to the Entry on a position
• Taking a position on a trade too early
Consider the following for a moment:
How many times have you been shut out of a good trading opportunity simply because you entered way too early?
The (FOMO) fear of missing out is most likely what drew you into the trade. You were correct about the market's direction, but you lost money because your trade entry system was flawed.
Check out the chart below:
Now think for a second…
...consider how many times this has happened to you. You'll see that this is a real issue that many traders face.
Don't get me wrong: risk management, exit strategy, position-sizing, and all the other components of a successful strategy are important...
...but they won't help you much if you don't have a good trade-based entry strategy. We all know that traders are addicted to instant gratification, which seeks pleasure while avoiding pain.
We want to teach you how to improve your trade entry because the perfect entry can feed on the desire for instant gratification.
When Is The Best Time To Start Trading?
Chart courtesy of Wall Street Journal
When volatility increases, the best time to enter a trade is usually between 9:30 AM EST and 10:30 AM EST, and the last hour of trading between 3:00 PM EST and 4:00 PM EST.
According to a recent stock market study conducted by the Wall Street Journal in collaboration with Pragma LLC, the last 30 minutes of the trading day are the busiest.
So, between 3:30 and 4:00 p.m. EST, approximately 23% of the total trading volume is exchanged each day.
In other words, one of the best times to enter a trade is right before the closing bell, when end-of-day prices for thousands of stocks are determined.
These are good entry strategies for day trading, swing trading and even going long in a position as the best price for the stock is important to profits.
Similarly, stock prices exhibit trading patterns based on the day of the week.
Not all trading days are created equal, according to the stats.
The day of the week effect backs up the idea that if you buy stocks on certain days of the week, you'll have a better chance of making money.
As a result, the best day of the week to buy stocks is the last 30-minutes of the Monday trading session.
Historically, stock prices tend to fall on the first trading day of the week before recovering the following day – on Tuesday.
Selling stock on Friday, before Monday's sell-off, is the logical thing to do.
Here Are The "Key Lime Ingredients" To Trade Entries Time Strategies.
• The meeting of two trendlines
• A convergence of several technical factors
• Emotional states
• Price movement
We'll show you the one and only trade entry system you'll ever need to catch tops and bottoms.
Top 3 Trade Entry Indicators
You can enter at the best possible price by using one of the Technical Indicators listed below:
1. Williams percent R –
2. Rate of Change (ROC) – used in long-term stock investing.
3. Relative Strength Index (RSI) – learn more about the RSI in detail here
On a daily basis, these technical indicators assist us in pulling the trigger on our trades to take a position.
Important note about Technical Indicators...
...They should only be used in conjunction with price action analysis, never on their own because the price is the purest form of data on a stock chart.
How To Boost Your Trade Entry
If you want to make money right away, you must perfect your timing. The best way to find the best entry-level stocks is to be proactive rather than reactive. Being proactive entails pre-planning your Trade Entry. You must anticipate and forecast the stock prices of your choice.
Setting up stock trades after the market closes is a simple way to remove noise and improve your entry. When compared to a reactive trader, you will not second-guess yourself.
As the name implies, a reactive trader reacts to the constant ebb and flow of stock prices, working in "the now."
Reactive traders frequently end up jumping into momentum plays that reverse on them, leaving this type of trader frustrated.
This is called chasing the stock and it's a big no-no.
Our Second Trade Entry Concentration
Limit orders can be used to improve trade entry. The use of limit orders is the second tip for improving trade entry.
Simply put, limit orders enable stock investors to purchase securities at the best possible price.
As a result, ensure that your stock brokerage trading firm provides good order execution quality.
Using technical indicators is another way to improve your trade entry.
Profitable Trading Entry Techniques
Creating a Profitable Trade Entry System is really the same as constructing a house.
Building a house is a complicated process for a new builder, and so is developing Trading Entry Strategies for traders who have never done it before, but when you break it down into sections at a time it becomes much easier.
The foundation is the first thing you lay when building a house, but with your trading strategy, the process begins with the Entry Idea.
Again, don't be fooled...
...Your Trade Entry System can be as simple as purchasing stocks at the close of the current candle, and you will yet still make money.
Concentration For Finding Better Trade Entries
To improve your timing, look to reduce the timeframe you're using.
Essentially, if you trade on the daily chart, you can switch to the 5-minute time frame and look for the same entry signal to appear on the lower chart.
*Please keep in mind that we will not go over how to analyze the market, but will instead concentrate on Trading Entry Strategies.
So, now that you've done your homework and identified the reasons why you think a certain stock will be Bullish or Bearish, it's time to concentrate on your Trade Entry.
We don't want to buy or sell stocks based on gut instinct, but rather on what our Ttrading System tells us.
Here Are 3 Trading Entry Strategies To Experiment With.
OHLC Entry Is The First Trade Entry System.
The Open High Low entry strategy is a day trading strategy that allows you to buy and sell stocks within the first 1 – 5 minutes after the opening bell.
The rules for entry are straightforward:
1. A buy entry signal is generated when the opening price and the lowest price are the same. Buy when the first 1-minute candle high is broken.
2. A sell entry signal is generated when the opening price and the highest price are the same. Sell when the first 1-minute candle low is broken.
