Hey hey: what's up my friends, so in today's episode right i want to talk about trading entries right, the brutal truths that you know. Nobody talks about. Okay, because often right traders, they fix it so much on their entries. Thinking that that's the only way right to becoming a winning trader but hey, let me share with you some truths about your entry right that you know nobody talks about number one breakouts may fail all right.

I don't care how good your breakout trading setup looks like market could be in a range for six months. Forms of tight volatility. Contraction pattern looks like it's getting ready to break out and dust next thing. You know it reverse and ends up being a false breakout, and that is highly possible right.

So don't rule that out where breakouts may feel, no matter how good it looks, number two pullbacks may never come so market could be in an uptrend right, trending, higher and you're waiting for a pullback, because you you don't want to chase the markets and guess what The pullback may never come and the stock continues to rally another 100 higher without you, because you are waiting for a pullback, and that could happen right pretty often, especially if the market is in a strong uptrend number three pullbacks may become a reversal. So let's say you know: you're looking to buy a stock, you know waiting for a pullback towards the 50 period, moving average right, the price retraces to the 50 moving average and then bump right. One piece of bad news hits the market and it just slides through the 50ma and the pullback ends up becoming the reversal, and the the worst thing of all is that you know you wear long on a 50ma only to get caught right on the downswing. On the neck, on the on the on the bad news on the reversal, yes, that could happen as well.

Fourth thing: confirmation may be too late, so maybe you're waiting for all the stars to align for the technical analysis, to align with the fundamental analysis and for that to align with sentiment analysis. You know you're waiting for the chat to be bullish. You know three days in a row waiting for fundamentals to be rosy waiting for sentiment, analysis to be bullish and by the time that happens, then you go long. Then you buy problem with that is that by the time all the stars are aligned by the time you get all the confirmation in the world.

That's where you know, there's no one left to buy and the market collapse, and you can again right. You get caught right on the wrong side of the move. Okay, so that's where you know confirmation may be too late. So at this point you might seem you know man trading entries, there's no way to to nail it perfectly and you're absolutely right.

This there's no way to nail your entries 100 perfectly right, but here's the good news in a way right. You don't need perfect entries to make it as a trader right. Take, for example, a system like trend following it has a winning rate of about 30 40, and you know it still gathers right so much money right in the hedge fund industry, millions, millions, if not billions of dollars. Why is that a trading system which, with you know such a poor entry, a poor winning rate, but they still, you know, get so much money to manage, and the reason is this is that yes, your entry might suck, you might have a 40 winning rate, but If your average winners is larger than your average losers, you can still make money in the long run, even with a poor entry.

For example, let's say you have a trading system that makes money 40 of the time, but each time you win, you win three dollars and each time you lose, you lose a dollar. You can see that in the long run, you'll still make money. Okay, so don't get too fixated on your entries. Yes, they are important, but not they're, not essential right to make it as a trader they're.

Just one part of the equation: right, don't neglect other parts of the equation, which includes your risk management. To make sure that you know you don't blow up your account just because of a few losing trades. You don't neglect your let's say your trade management. What if the market moves in your favor, how would you know exit your winning trades? Will you be using a trailing stop loss? Will you be using a fixed target right? What if the market moves against you? Where is your stop loss? Alright, at what point, or rather at what level on the chart right, will you call it quits and exit the trade right to protect your account and to leave to fight another day? So these are all important questions right.

You must also answer. Besides your entry point. Okay, so with that said right now, let's do a quick recap trading entries. The truth is this right number one breakouts may fail number two pullbacks may never come number three pullbacks might become reversal.

Number four confirmation might be too late right, but the good news is again: you don't need perfect entries to make it as a trader all right so with that's it. I wish you good luck and good trading. I will talk to you soon. You.