The objective of finding good anticipation setup is to lower risk and not get influenced by market noise.
If you use breakdowns as entry setup then your stops are wider to accommodate that days move. In above example if you shorted on 2/27 your stop would be approximately 3.5% at high of that day. But if this was a anticipation setup your stop could be much lower at 1% or less.
If you can find setups where your stop is less than 2% you can take lots of shots and your risk reward equation becomes easy if stok even make 4% to 10% move after entry. It also allows you to put higher amount of capital in a trade.
If you are serious about making money trading stocks , develop skills in identifying and trading anticipation setups. Once you develop that skill you can make money at will....
If you use breakdowns as entry setup then your stops are wider to accommodate that days move. In above example if you shorted on 2/27 your stop would be approximately 3.5% at high of that day. But if this was a anticipation setup your stop could be much lower at 1% or less.
If you can find setups where your stop is less than 2% you can take lots of shots and your risk reward equation becomes easy if stok even make 4% to 10% move after entry. It also allows you to put higher amount of capital in a trade.
If you are serious about making money trading stocks , develop skills in identifying and trading anticipation setups. Once you develop that skill you can make money at will....
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