TGIFF #004: Why Your Trade Entries are Not as Important as You Think?

Did you know?

Many traders, not just the beginners, tend to over-focus on trade entries and try to find some ‘magic’ trading system or trading software that will just allow them to print money on autopilot. 

I get it. 

The trading industry pushes trade entries and ‘systems’ because that’s what sells and gets people to trade, as opposed to the extremely important aspects of trading, such as trade exits, money management and psychology.

The online trading industry deceives you to believe…

…that the perfect entry is all you need to make money. 

Almost all the products, courses and services target the naive traders who believe that the ‘perfect entry’ is the king.

One of the reasons traders so easily fall for this entry theory is because all that’s discussed and sold online and elsewhere are trade entry systems that simply don’t stress the importance of the exit.

And to be brutally honest, that’s absolutely bullshit.

It’s easy to enter, hard to exit.

 Let me share a very important fact. It’s much more difficult to exit your trade for maximum benefit than it is to enter. So, that’s where most of your attention should be. 

Keep in mind - when I say ‘trade exit’, I am referring to everything surrounding the trade exit. The stop loss, position size, risk reward, support and resistance levels, the average true range, Fibonacci expansions. Literally everything. 

There are many factors one must consider when planning trade exits. Yet for most traders, it seems to be just an afterthought. 

The simple fact is - with correct money management and risk reward (trade exits), a trader can make money even when with a totally random entry system.

So, does that mean the entry isn’t important?

Absolutely not. 

Because you can combine a high-probability entry method such as limit orders, or trading at the end of NY close to get you better entries combined with proper trade exits to improve your trading performance far beyond just a random entry method. 

The point I want to drive home is that the exit system is much more important than the entry system you use.

So just keep in mind as you are out there surfing the web and reading tons of different trading blogs and, God forbid, taking out your credit card and paying for some clever marketing gimmick “guaranteed” to get you the best entry possible. 

Hopefully, you will start to think just as much, if not more, about the trade’s exit than its entry. And if you’re still not convinced that your exit strategy is way more important than whatever entry strategy you employ, you would do well to remember this: The money is made or lost on the trade exit, not on the entry, contrary to popular opinion.

With the hope that your trade results are going in an upward trajectory with my tactical trading tips, I’ll see you next Friday.

Till then, keep trading and have a wonderful weekend!

Apart from these tactical trading tips, there are 2 more ways I can help you:

1. Beginners Fast Track to Forex Domination: If you are a beginner, looking to learn forex trade from scratch to have a massive source of income, I have just the perfect course for you: Enroll in the course now!
   
   
2. The King of Forex Monthly Membership: If you are further in your journey but struggling with your trades, simply copy my exact setups, watch me breakdown trade analysis each week, learn from my own training modules and chat with me LIVE every month! Join 1000+ traders on an upward trading journey!