Helpful Hints When Placing Entries & Exits In The Market.

Helpful Hints When Placing Entries & Exits In The Market.

          These numbers, believe it or not, are very Important when placing entries and exits in the market. I suggest using these numbers (whole & half numbers) for all market entries and exits when called for (i.e. when a potential entry or exit from the market is near a round [.00] or half [.50] number). In a nutshell, you never want to place a 'Buy' or 'Sell' order on a half (.50) or whole (.00) number when placing either your initial stop loss (ISL) or profit objective(s). On the other side of the coin, if you enter on breakouts you never want to place your 'Buy Stop' or 'Sell Stop' (entry order) on a whole number or a half number. You'll definitely want to be a tick above a whole number (.25) or below a whole number (.75). If you're near half numbers you either want to be a tick above (.75) or below a half number (.25). These crucial numbers (half [.50] & whole numbers [.00]) can help in entry and exit into the market. Take a look below to see what we mean:

Never buy 00's or 50's (for example: Never buy @ 1460.00 or Buy @ 1460.50)
Rather, buy .25's and .75's (for example: Rather buy @ 1460.25 or Buy @ 1460.75)

Never sell .00's or .50's (for example: Never sell @ 1460.00 or Sell @ $1460.50)
Rather, Sell .75's and .25's (for example: sell @ 1459.75 or Sell @ 1460.25)

Half Dectile Numbers: 1345, 1355, 1365, 1375, 1385, etc.
- Never buy or sell @ these whole (.00) or half (.50) numbers...
Rather buy @ 1345.25, 1355.25, 1365.25, 1375.25, 1385.25, etc.
Rather sell @ 1344.75, 1354.75, 1364.75, 1374.75, 1384.75, etc.

Dectile Numbers: 1210, 1220, 1230, 1240, 1250, etc.
- Never buy or sell @ these numbers...
Rather buy @ 1210.25, 1220.25, 1230.25, 1240.25. 1250.25, etc.
Rather sell @ $1209.75, 1219.75, 1229.75, 1239.75, 1249.75, etc.

Centile Numbers: 1200, 1300, 1400, 1500
- Never buy or sell @ these numbers...
Rather buy @ 1200.25, 1300.25, 1400.25, 1500.25
Rather sell @ 1199.75, 1299.75, 1399.75, 1499.75
Realize that floor traders tend to take prices to these levels (i.e. .00's & .50's) intentionally to stop traders out of the market. Notice how many times the high or low of a day, or any significant high or low that you see on a chart ends up in these half and whole numbers (i.e. 1450 or 1450.50). This is true of most all markets. So, if your entry or exit falls near a half (.50) or whole (.00) number, simply adjust your entry or exit according to what you just learned here.

I hope you've learned a whole lot from these Helpful Hints When Placing Entries & Exits In The Market. And please remember, there are many more useful and valuable trading lessons coming your way in the following weeks, so please be on the lookout for them.

Get all 20 Survival Skills for Traders here