Dealing with entry timing.

I got this question today.

How do you personally get around from being “too early” or “too late” on an entry?

There are a few things that have helped me get over missing a trade or “being right” and not making money.

  • Opportunity vs profit. I thought the market owed me profits.  Now, I see the bars on the chart not as profit but an opportunity to profit.  The market does not owe me anything.  I owe it to myself to execute my plan to the best of my ability.  Good things happen.
  • Important feedback. If a trade develops in a way that I had not anticipated, it means I did not notice a change.  It is now up to me to understand why or determine it was an aberration.  Either way the market is giving me valuable feedback.
  • Unlimited time horizon. One of the side effects of trading is missing trades.  It is something that you have to get over.  It is a fact of life.  The next trade is always more important than the last one.  You should have more experience and knowledge, right?  Knowledge of yourself, the market, and the interaction between the two.

Said in one sentence.  I get over missing trades because I do not have a sense of entitlement, willing to use the feedback, and know that it is just one trade in 1000’s or hopefully 10,000’s.

We would really appreciate your feedback, if you like, hate, or think we are full of crap. Please leave a comment, a voice mail (312) 725-9121, email info @ traderhabits (dot) com or twitterstocktwits, and facebookSubscribe to Traderhabits by Email

5 Responses to Dealing with entry timing.

  1. […] This post was mentioned on Twitter by Eli Radke, Anni_V. Anni_V said: RT @eradke: Dealing with entry timing. $STUDY #FT71 $$ >>Very true and well said<< […]

  2. John says:

    why not just define the potential trade and where you would be wrong in the plan? a consistent approach that enables you to focus more on refining the plan and working on controlling risk than stressing over precision in your entries. the plan can define the probabilities.

    • Eradke says:

      Entries are more sensitive if you are a scalper. Although you can learn to do those things it is not natural. New and struggling traders do not have that perspective and usually their expectations are suboptimal.

  3. […] Eli Radke on timing trade entries – great, practical advice.  (TraderHabits) […]

The services and materials provided should not to be interpreted as investment advice, an endorsement of any security, commodity, future, or personal investment advice, or an offer to buy, sell, hold or trade futures, options or commodity interests or a recommendation to buy, sell, hold or trade futures, options or commodity interests. You assume the entire cost and risk of investing and are solely responsible for any and all gains and losses, financial, emotional, or otherwise, experienced, suffered, or incurred by you.

Read previous post:
Morning Brief 2-9

Morning Brief2 9