The entry isn't what loses most traders money; the analysis is. An entry point is part of a strategy, and it can be memorised. Analysis is understanding, and it's what leads you to the entry point. If the analysis is right, the entry is right. If the analysis is wrong, the entry is wrong however carefully you apply the strategy. And each has its own time: a time to analyse, and a time to enter.
Why does analysis come before the entry?
In the episode Times to Analyse and Times to Enter, Mohamad says this field is built with great precision on information, not on bets. You can't take an entry from an entry; the entry is a result. First you analyse and understand what's happening, then the entry point you learned falls into place.
Analysis is understanding; the entry is memorised. Get the analysis right and the entry is right.
That's why you meet people who know their strategy perfectly, apply it, and still lose. Not because the strategy is wrong, but because they used it somewhere they didn't understand. The same idea runs through Why You Should Trade What You See, Not What You Imagine.
There's no "best timeframe combination"
Plenty of people think analysis starts with a particular set of linked timeframes, or with choosing a timeframe and hunting it for areas of interest. He calls that one of the biggest mistakes. You might find timeframes that sit well together, but there's no combination that's best in every case.
The information you have is what chooses the timeframe. If you don't understand what's happening on one, don't analyse on it. If another gives you clear information you can follow, that's your timeframe for now. He tells of a trainee who looked at a higher timeframe, found the move noisy, fast and full of wicks, and said: this isn't the time to analyse on this chart — then moved to one that showed a clear move.
Not every move is yours
He points out that the market has more than one kind of direction: up, down, an upward correction, a downward correction, and sideways. Corrections in particular are where many people flounder: the move is fast, the wicks are many, people are afraid and hesitant, and some are simply gambling. You don't need to be in those moves.
And if you missed a move, don't jump in halfway because you can see others making money. Ask: what is forcing me to enter here? If the chart gives you no answer, don't enter. Wait until price gives you new information to decide with.
- A messy corrective move full of wicks.
- People are hesitant and afraid.
- You're jumping into a move halfway through.
- You can't say why you'd enter now.
- A clear move and information you understand.
- Price has reached the area you were waiting for.
- Your analysis says why here and why now.
- Your conditions are met, so the entry point arrives.
Patience like a sniper's
He uses the image of a sniper who may wait days for the target to appear. Move too early and you give yourself away. A trader is the same: their patience and discipline rest on information they're waiting for from the market, and a move against what they've studied doesn't pull them in. He adds that patience and discipline only come with information — you can't be patient about something you don't know.
Where do fear and hesitation come from?
You're always told to control your emotions. He says emotions only get in when knowledge is missing. When you're aware of every move you make, there's no room left for them. In fact, a trader who has learned can read other people's fear and hesitation in the candles themselves, and understand that this isn't their moment.
See also Patience and Discipline in Trading and Why You Should Stop Expecting Instant Results. Start with the free awareness series, follow the live sessions, and learn to read price lesson by lesson at the Academy.
Common questions
Why do I enter at the right point and still lose?
Because the entry follows the analysis. If the analysis is wrong, the entry is wrong even if you apply the strategy to the letter. Fix the analysis first.
What's the best timeframe combination for analysis?
There's no single combination that's best in every case. The timeframe whose information you understand and can read clearly is the one that chooses you, not the other way round.
Should I trade every move in the market?
No. In messy corrective moves, when people are hesitant and afraid, you don't need to be involved. Wait until price gives you clear information.
How do I stop feeling fear and hesitation at entry?
Fear and hesitation come from missing information. When you know what you're waiting for and why, there's less room for them. Knowledge is what keeps emotion out of the decision.
