The Best Entry and Exit Indicators

Picking a good stock to trade is only HALF the battle. The other half of the battle is zeroing in on the precise moment to enter and then the precise moment to exit the trade - that’s when your profits start piling up. So today we're talking through how to make these decisions and how to recognize the best entry and exit indicators.

It doesn’t matter if you pick a good stock. Anyone can do that but when to enter the market is a whole different question and will separate you from the amateur traders out there.

When you learn how to do that you can create a smashing track record.

Smashing is my new trading term.  I have been mentoring a group of traders in Great Britain.

Everything is “You smash it, girl” or that a smashing trade.  I like Smashing it.

I started trading in the stock Market back in the early 1970’s.  I remember the very first stock I ever bought.  It was General Electric.  I purchased a small stake right after a 2 for 1 split, held it for 6 years and doubled my month. I was hooked on trading.  These days I trade mostly options.  Doubling my money doesn’t take 6 years.  I usually double my portfolio balance at least 3 or 4 times during a single year.  I have been teaching others how I do it with smashing results.

I generally use the three month charts to choose which ticker I want to trade.  I am looking for a number of factors to all be in alignment

• The volume traded each day
• The price patterns formed over the past three months.
• I the stock following the Market or is it trading contrary to the Market

I look at the option chains where I want to see:

• Weekly options
• The Bid Ask spread fairly tight
• A normal Implied Volatility

Once I determine a Stock is a go to trade, I now want to refine where I enter the trade. I want to maximize profits on every single trade placed.

 Then I take the time to further refine the moment that I should pull the plug on the trade.

I go to the 1 day chart by the minute for this.  Again, define where the support and resistance areas are.  They will help you target the timing of your trade.  

If any of you ask me what is the one trait that makes a great trader, I would tell you patience.  Wait until all the stars a line and at that moment place your trade.  I use what I call a LINE IN THE SAND to define that moment.

Here is an example of what I am talking about:

On this trade I want to buy a put because I think the price will go down. I note the support where the price keeps bouncing up.  That line is my line in the sand or my decision point.  If I calmly wait until the price breaks below that line accompanied by a little volume spike, The volume spike is important.

I enter the trade at the most opportune time giving myself better odds of good trade.