Quote from Mysteron:
Nope, the reason why is that your chances of obtaining a profitable exit are much reduced if your entry is incorrectly placed.
Just common sense really, which many here seem to lack.
First of all, I totally agree that common sense is what matters above everything else. Most lack it, and that's why most aren't profitable.
Agreed (to your first premise), in the sense that a "better" timed entry (quotations marks because some might disagree about anyone being capable of objectively picking a great entry most of the time) will statistically improve your chances of getting a profitable trade, on any individual trade. So, the entry is very important.
But, over the lifetime of most trades, even the ones with a bad entry, there is a time where they are profitable. Concentrating on getting a great entry every time is very hard, but the exit is what ultimately determines the Pnl, and therefore by most accounts, is of greater importance. Also, in a portfolio it's very hard to perfectly time the entry every time.
Also, over one's career as a trader, the significance of any single trader would be minimal, and a systematic exit to lock in the profits or minimizing the losses, I think is the way to go. I could be wrong, but it works for me, and trading is a very personal pursuit, what might suit me might bankrupt somebody else.
It can be argued that a systematic entry will be help, and I agree, a good system needs to have both. But with both, the exit, I think, has more bearings on whether or not I am up or down overall.
