Yueying: When making breakthrough trades in the currency circle, should I enter immediately after the breakthrough or wait for a pullback to enter?

CN
1 year ago

Breakthrough trading has always been a topic of keen discussion among traders. In actual operation, whether to enter the market immediately after a breakthrough or wait for a pullback before entering the market is a problem that troubles many people.

The advantage of entering the market immediately after a breakthrough is that it allows you to seize the beginning of the market trend and gain greater profits. When the market breaks through key resistance or support levels, it usually triggers a strong trend. If you can enter the market in a timely manner, it is possible to achieve substantial returns in a short period of time.

However, this strategy also carries risks. Market breakthroughs are not necessarily genuine and may be false breakthroughs. Blindly following the trend can easily lead to being trapped. The method of entering the market after a pullback is relatively more stable. By waiting for the market to pull back, you can confirm the authenticity of the breakthrough and enter the market at a lower price. This can reduce risks, but it may also result in missing out on some profits.

So, how do you choose?

First, consider the market's volatility. If the market is highly volatile, the possibility of false breakthroughs is also high, and entering after a pullback may be more appropriate at this time. Secondly, the decision should be based on one's own risk tolerance. Traders who are willing to take risks may be more inclined to enter the market immediately after a breakthrough. In addition, it is also necessary to use technical analysis tools, such as moving averages and Bollinger Bands, to assist in judgment.

Regardless of which method you choose, pay attention to the following points:

Develop a clear trading plan, including entry points, stop-loss points, and profit-taking points.

Strictly adhere to the trading plan and avoid emotional interference.

Control your position size and avoid overtrading. Continuously learn and improve your trading skills.

Entering the market at the moment of breakthrough or re-entering after confirming the breakthrough pullback are both viable options. A breakthrough marks the beginning of further market development, but it does not necessarily guarantee a significant rise. Therefore, you need to be prepared for the failure of a breakthrough and be proficient in your strategies.

In conclusion, when engaging in breakthrough trading, whether entering the market immediately after a breakthrough or after a pullback, each has its advantages and risks. The key is to choose a method that suits your own situation and the market environment, and strictly adhere to the trading plan.

Successful futures trading is not out of reach, but it requires traders to bravely overcome knowledge accumulation, mental cultivation, risk control, strategy formulation and execution, self-reflection, and long-term persistence. Each challenge is full of difficulties, but as long as we have determination, perseverance, and wisdom, we can definitely carve out our own path to success in the futures market. I hope that every futures trader can continue to move forward on this challenging path and ultimately achieve their trading goals!

- I am Zhou Yueying, a teacher dedicated to technical analysis. If you have any questions or issues regarding operations or trends, feel free to communicate and learn with me! Let's exchange ideas and profit together! Official Account: Zhou Yueying, V Blog: Financial Expert Zhou Yueying

The market changes constantly every day, and all I can do is to provide some modest assistance based on my years of practical experience, guiding everyone's investment decisions and management in the right direction. Meeting is fate, and I am a believer in fate. If you have any doubts or uncertainties in the currency circle, you are welcome to pay more attention to Zhou Yueying, and I believe it will be helpful to you.

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