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How much money does one make on an entry to a trade? I would suggest zero.
It is not the entry that makes a trader money, it is the exit. The job of
the exit one is using is to reduce to a minimum the amount one will lose on
the trades that will go against him, and allow him the maximum gain on the
trades that are profitable. Without an exit defined, a trader does not
know what the maximum loss will be per trade, nor does he know the maximum
gain he may possibly acheive per trade. One of the reasons many newbie
traders fail is because of the falicy that the entry is the most important
part of a trade! Without an exit defined their capital is soon lost. I
would submit that it is possible, to some degree, by simply having the exits
defined in a system, that one could make money tossing a coin as the entry
signal, or, possibly, by listening to the duck (you can veiw his picture at
www.ndb.com).
Kohath
> Looking for those extra couple of ticks can cost a lot of money. Ira.
>
> TheGonch at MediaKat wrote:
>
> > Of course both entries and exits are important.
> >
> > But if one is naturally good at only one of the two, the other will
> > require a lot more focus and attention.
> >
> > I, for example, am bad at exits, so exits are more important to me; it's
> > where I screw up.
> >
> > I think it is based on the individual's psychological makeup.
> >
> > Regards
> > DanG
>
>
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