The Importance Of Trade Selection

The Most Powerful Key Trade selection is all about finding and selecting specific behavior patterns that have a history of producing a known outcome, and these patterns repeat themselves over and over. While the most important consideration, always, is an awareness of the trend, it is knowing the where and when to then take a position within the established trend that becomes the most powerful trading tool. In fact, EdgeTraderPlus maintains that the success or failure of any selected trade is determined before a position is established.

That is how important trade selection is. Trading in harmony with the trend does raise the odds for a successful outcome considerably than when going against it. The key to a successful trade is then determined by where, within the trend, any position is established, and when. One can know the prevailing direction of prices, take a position in that direction, and still lose money. Trends do correct, and to establish a position just before a correction sets in can lead to a large risk that may result in an unnecessary loss. This addresses the where dilemma. Yes, the trend can bail out an ill-timed position, but why take undue risks and be so unprepared in knowing when to establish a trade more favorably?

There is no guarantee that the where, alone is enough. The market also needs to confirm that it will hold the selected location. Confirmation that the likelihood of a trade selection will hold is determined by reading price range and volume activity, and this helps to answer the when element of timing in placing a trade. EdgeTraderPlus endeavors to use a set of disciplined rules to create a structure within which all trades are made. It is impossible to comprehend the unlimited number of possibilities that exists for taking a position in a market at any given time. By imposing disciplined trade criteria that must be met before taking a market position, the universe of trade opportunities is reduced to only those that have a known behavior outcome, based on past pattern behavior results. The vital element of trade selection then becomes focused just on those specific possibilities, now more manageable in number. An organized structure has been formed within the established trend to implement the disciplined rules of engagement.

Now it is a function of execution and maintaining an ongoing awareness of the kinds of market behavior that supports the position, balanced with an awareness of the kinds of market activity that may signal a change in direction. EdgeTraderPlus has removed a large degree of uncertainty in the trade selection process simply by eliminating so many of the possible trade considerations, and we are now positioned to select only those opportunities that have a known probable outcome. This process objectively increases the probability of a successful trade. It is always good to have a plan. And we certainly have one.