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  • Wednesday, 17 August 2022

    Timing, the most important Trading Indicator




    warren Buffet once said "The stock market is a device for transferring money from the impatient to the patient"

    A skilled trader is aware that making logical choices is the key to excellent entries. Because of this, timing and sniper entries go hand in hand. It is a question of reasonable judgment in this business, and those who don't treat timing with the deference it merits won't be around for very long.

    The saying "buy low, sell high" is just one aspect of trading; there is much more to it. Finding the lowest low or highest high is actually a full discipline in and of itself. Timing is not a crucial element for an investor, but for traders, time is actually another signal.


    Please allow me to explain so you can grasp what I just said. Instead of focusing on timeliness, investors seek a long- or medium-term profit based on high-timeframe supply and demand zones. Even the dollar-cost averaging approach (DCA) is not firmly linked to the entrance time. Contrarily, a trader must give the timing of a trade top consideration because it will immediately impact your risk-to-reward ratio.

    Along with logic, observation, and mental discipline, timing (and a dash of intuition) are developed. In actuality, practicing "timing" is just as important as doing technical or basic analysis. Time should be on your entry checklist because many seasoned traders think of it as a buy and sell indicator.
     

    If your trade will succeed or fail depends on how well you time the market. The "timing element" also refers to the precise time at which momentum shifts, as opposed to just that moment itself. Market timing and market cycles are closely related. Timing also involves choosing the times of day when you will place your positions because the overlap between forex sessions can mess with the direction of your daily transaction.

    Sifiso Nkwanyana

    Author & Editor

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