IMO it depends on the expected time interval of the trade. For example a 0dte option gives very little leeway in which to manage effectively a poor entry.
Brainteaser for the weekend.
I used to think nailing the entry was paramount (both price and timing) and everything else was secondary. These days, however, exits play a bigger role.
What say you?
What Matters More: Entry or Exit?
- Thread starter schizo
- Start date
Which matters more, the yin or the yang?
Well, give us some flavor. What kind of stats?
I have a brother in law who is in the custom wood sawing business. That is, he buys old growth logs and then saws them up for rich people who can't get enough of that clear vertical grain for door frames and dinner tables. He said something to me once that caught my attention and can be applied to trading.
He said, "PennySnatch my boy, we make our money when we buy the wood."
He said, "PennySnatch my boy, we make our money when we buy the wood."
Oh, hell yes, they are. With every one of them trades, you see coins flying everywhere! (C'mon, lighten up. You knew half of us were dishonest SOBs already.
)
Entries are optional. Exits are mandatory. Other than that, it is pulling on two sides of a rope over the "moat of opportunity costs".
Is that metaphoric enough?
Is that metaphoric enough?
Fred is right of course but I'm going to be a bit basic and say that entries are still more important for me.
I need to avoid the initial stop loss level and most of my successful trades start with a 'pop' in the right direction.
Once I have a bit of breathing space in the right direction and once I have a completely negative result off the table then I can usually manage a reasonable outcome.Not perfect,of course,and I often get out too early but I still think that entries for me are key.