New traders make the mistake of focusing far too much energy and effort into entries. Entries do have to be good to give the trader the potential for a profit. Preferable risking $1 to make $3 and at the point where maybe a trend is starting. However the entry is really not the most important part of a trade. It is the exit that determines whether your trade is profitable are unprofitable. It is the exit that determines whether you have a big loss or a small loss, a big win or small win. Traders should focus just as much effort on the exit, at what level will you know you are wrong? How will you know it is time to exit with a profit? Also position sizing will play a huge part in whether you make it or not as a trader. Your position sizing will determine whether you even survive as a trader. Crucial questions a trader has to know when they enter a trade is: How much will I lose if I am wrong? How many times in a row can I be wrong and survive?
Yes, entries are a part of trading but they are not the most important thing in trading. Focus just as much on exits, risk management, and the bigger picture of your trading method and you will do well.
