My name is Rick and I'm a new member. Have a question regarding entry points. Any change you could shed some light on how you precisely enter a position as it moves above the pivot point?
I have been using a stop-limit order to enter. For instance, if entry is at $25.50, I would put a stop limit as it trades above 50c with a 5c top offset.
Not sure that I'm doing it right, so wondering if you had any better suggestions.
The entry point really depends on market conditions. In a downtrending market like we had in 2022 we needed to be really precise with our entry points, and often times we were still stopped out with a small loss.
In this up-trending market we have more latitude with our entries. Depending upon the stock of course, If there was a stock I really wanted to own and the buy point was $25.00 then it is actionable up to $26.00 and change. I buy sometimes 5% above a buy point in an up-trending market. I want to buy strength, and when our stock starts moving higher then we may need to pay a little more. But, we do not want to chase a stock, and that is why 5% above the buy point is enough.
I hope this answers your question.