Keep in mind that when I use the word “follow” I’m not just talking about trailing along behind a market. The word is describing an experience of setting yourself aside and learning from what they are doing. Using a simple swing framework, we learned a few ways we could trade the S&P E-Mini and AUD/USD that we were following. This month we will follow Soybean futures which have been running up smoothly and USD/CAD which has been running down smoothly.
In this post, we are going to make the distinction of what side of a pivot we are entering and understand the pros and cons related to each type. Left side entry is like having a limit order waiting as price is coming into your area and right side entry is like waiting for a turn or confirmation. It’s good to make the distinction and practice getting the experience of each one to see what might fit you personally and in what situation. It’s not that one is better than the other, its the motivation behind the decision that matters. Left-sided entries can be motivated by an out of control impulsiveness and right-sided entries can be motivated by an attempt to avoid risk. Both these motivations are fear-based and will cause trouble. If you haven’t already, check out the “Map Any Market At Time Frame” series that sets the foundations for many of these posts.