Trade in the direction of strenght

 It is better to trade in the direction of strength than to bet against it. 

What do I mean by that? Let`s use as an example a trade on NATGAS

Daily chart

A beautiful candlestick set-up after a retracement in a stage 1 accumulation phase of the market. The stage one seems to be transitioning into the stage 2-uptrend. A great time to establish long positions.

- If you do not have experience in trading NATGAS, consider using a demo account. 

4 Hour chart

15Min chart

To enter the NATGAS market long, I had to see some underlying strength in that direction. Only after the market cleared the 3.084 level, I start looking to enter the market long.

I entered when the very tight consolidation started resolving itself higher. The 3.084 level was used as an initial stop-loss. Shortly after entering the trade, I was able to move the stop-loss to B/E.

The break-even point is the sweet spot, and it is important for a trader to use it. It infinitely improves the risk-to-reward ratio. 

Life`s wisdoms
It is better to have less and keep it than exposing your capital to an excess risk.