The Secrets of Trading the First Pullback - Alwin Ng
Introduction
Sometimes the best things are just right in front of you.
Believe it or not, you see price pullbacks almost every time you open your price chart
because it is inevitable that price is cycling and pulling back and forth all the time.
However, many traders do not see it. That just goes to show that humans (including
traders) can be so engrossed in their own thing that they often fail to see the obvious that
is right in front of them.
While this book is primarily about pullbacks, this is also my way of breaking down
information from what seems to be bulky blocks into little absorbable chunks and
building them back into useful resources. By breaking the process down, you are able to
spot the various clues in the market easily. The more clues you find, the more likely that
you have a successful trade.
At the same time, never forget the bigger picture when trading. Since the big guns are the
one with the deepest pocket, it makes sense to keep track of who those market leaders
are. By keeping track, I don’t mean searching for the traders’ information. Instead, I am
referring to understanding what and how price is reacting to certain challenges in the
market. In fact, the more you understand price action, the easier you can spot the leader.
Trading price action pullbacks can be very profitable if done correctly. Hence, I hope to
show you a variety of pullback patterns and hopefully you can use that as a starting point
to fine tune your own trading. Learning to trade is a journey. However, once you built a
solid foundation, the rest of the journey should be easier.
Also, it is profitable trading pullback if it is congruent with your trading beliefs. Hence,
I hope to explain how, why and when trading pullbacks works.
