Practical Strategies for better trades
Juanis G. Barredo
Expert
Key Points
This quick guide shares practical tips to guide you on how to lock in profits, spot fresh opportunities, and use key support levels like EMAs, so you can confidently make better trades.
Navigating the stock market requires discipline, timing, and the right strategies to maximize gains and minimize losses. Whether you're looking to close a winning trade or spot a fresh opportunity to re-enter the market, having a clear game plan can make all the difference. So, to help you manage risks, lock in profits, and identify setups for your next move, here are some trading rules that you can consider before your next move:
1. When closing a trade: Exit if you hit your estimated targets or if key support levels break.
• You can take profit using your price targets or set stops when there is a breakdown of support levels, like the 10-day EMA for fast movers or the 20 to 50-day EMAs for others to secure your profits.
• After selling, wait for signs of new support before re-entering.
• If price breaks below the 20-day EMA, it could possibly revisit the 50 or 100 day EMA so you need to evaluate if that is a risk worth taking.
2. When reopening a trade: Jump back in when you see fresh support setups
• The first pullback after a strong move to the 10 or 20 day EMA can lead to a continuation of trend, especially if there breakout patterns
• A pullback to the 50 and 100 day EMA are often good for support levels and good swing setups
• If the price breaks below the 100-day EMA, stay out.
For the full explanation of these strategies, watch our 5-min video at bit.ly/COLtradingstrategies.
Success in trading isn’t just about making the right calls—it’s about having the discipline to follow proven strategies and adapt to changing trends. By focusing on price targets, key moving averages, and support levels, you can better position yourself for sustained profitability. Remember, every trade is an opportunity to learn and improve. Keep practicing and stay prepared.
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