Zippy wrote:

@DnJoe96  I repeat this a LOT here when people ask about what went wrong with trades and almost every time what went wrong is they entered near the end of price swing and then got stopped out on the pullback (what you called “a sudden reversal”). Try entering on a pullback, as Pete showed you. With your AMD short, enter on the close of a pullback bar to that descending trendline (11:30/11:35), off of which Pete recommended a short on the chart he posted for you. If you shorted the close of either of those bars, you took little heat on the trade. And if you can only handle a .20 loss on a $77 stock, you really need to size down and widen your wiggle room on a trade.

I agree – I think it would help everyone if you would expand on this a bit more? How would a trader tell the difference  between a pullback and actual shift in direction?  I’m sure one of the fears is that one enters on the pullback and then the stock doesn’t recover.  What method do you use to tell difference?

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