how important is the entry and how complicated does it need to be?

[Don Bright]

Entry and Exit are of equal importance. Price is meaningless, since we cannot be bothered by the current pricing of any stock. You need to make use of the many market factors available to you (Prem/Disc to FV, overall market, sector, relationship to BV, etc. and of course the basics of Momentum and Relative Strength).

Sometimes a 20 cent loss is a great exit, and 20 cent profit is a horrible exit....and since you can only relate the exit to the overall market at the time (not the entry price), then it simplifies the whole concept.

Good entry, good exit, move on to the next trade without concern over P&L, and you will find that this will simplify your trading life considerably.

Back to you all...

Don

 

[Breakout]

With all do respect to those who think the entry isn't
important. I have to disagree.

There are certain times when going short or long is a no-brainer.

 

[daniel_m]

Don...I don't mean to be unduly harsh (you're used to it anywaY!), but you seem to respond like Pavlovian dog with the same canned response any time the words "entry" and "exit" are mentioned..

Why do you automatically assume that everyone here is trading for 20cents?? It's practically a trading "fact" that the longer your time frame (you know:hours, days, weeks) the less important entry is and the more important exits are..

 

[daniel_m]

Originally posted by Breakout
With all do respect to those who think the entry isn't
important. I have to disagree.

There are certain times when going short or long is a no-brainer.

Re: your gif file

that doesn't really show anything....you are using information from after the fact..

there is no OBVIOUS reason NOT to go long at that point...it may well have been a reversal that insued rather than a continuing sell off...

now, in your example, it is not usually my style to go long at a point like that....it's just that it is not as obvious as you make it out to be...and someone's trading style may indeed REQUIRE them to go long at such a point...this person could also be doing very well...so the example didn't really show anything.

 

[Breakout]

Originally posted by daniel_m


Re: your gif file

that doesn't really show anything....you are using information from after the fact..

there is no OBVIOUS reason NOT to go long at that point...it may well have been a reversal that insued rather than a continuing sell off...

Hi daniel...you don't see any reasons to be short?

Let me give you two:

1. The trend was down.

2. Price just broke thru support.

Yes, I realize that doesn't guarantee the market will
continue down. But, I'll take the other side of your
long, everytime.

 

[ElCubano]

Originally posted by Breakout
With all do respect to those who think the entry isn't
important. I have to disagree.

There are certain times when going short or long is a no-brainer.

I agree with you on the no brainer stuff.......lets say that u have a no brainer setup that tells you to go long;and you do.....that setup may fail....so what would a good exit do??? get out...thats all that im talking about....we all know setups fail..what u do after ur in is more important than what u did before ur in.....

 

[aphexcoil]

"Better to be out and wish you were in then to be in and wish you were out."

aphie

 

[Breakout]

Originally posted by ElCubano


I agree with you on the no brainer stuff.......lets say that u have a no brainer setup that tells you to go long;and you do.....that setup may fail....so what would a good exit do??? get out...thats all that im talking about....we all know setups fail..what u do after ur in is more important than what u did before ur in.....

Hi ElCubano...here's what I would have tried to do on
this particular short.

After entry, I would place a 6 tick stop. Then I would
try to hold the position for a 3-1 profit.

I think anytime you put on a trade and you can get 3
dollars for every every dollar you risk, you have made an
excellent trade.

Sometimes I leave a lot on the table, but I don't believe
every long is going to the moon, and every short
down the sewer. If I can get my 3-1 profit objective,
I close out the trade and start looking for another.


Hope this helps.

 

[ElCubano]

let me ask a question...ahh forget it...thanks for the replies

 

[tntneo]

after thinking about it, I think Don says it best, although I stated something different.

entry and exit are equally important.
OK, I can live with that.

I still have the feeling that a majority of the effort is in the exit. but OK, that does not mean it's more important.
and still, 2 traders may have a positive and a negative outcome even though started with the same entry price and time. that tells you something too.

tntneo