Your Profits Are Generated When You Enter Your Trade

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Most traders make the mistake that they believe their profits are generated when they exit a trade. This is not the case and your profits are generated when you enter your trade. A good entry level will dictate the rest of your trade, anything from stop loss levels, hedge levels, additional entry levels and profits. Traders need to put in the hard work before entering an order.

Too many traders do not take their time when they analyze a trade and want to jump into it thinking they will take care of the rest as price action develops. This is the wrong approach; you do your hard work before you enter your trade and then set-it up in detail all from the start. Keep in mind that your profits are generated as you enter the trade, and not as you exit it. Yes, you will realize your profits after the exit, but they have been created from the start.

 

Very good point. I think this is some excellent advise.

 

I think that’s a great point as well!

I’ve been thinking lately about different ways to enter the market. Somewhere in the past (I can’t recall now) I saw a way to set Trailing Entry orders. This is an order type that, when the market moves against your intended position (down if you’re buying) then the entry price trails the market price to get you a better entry. Anyone seen these before? Or had success with them in the past?

Thanks and best of luck to all!

Brad

 
Brad Bonds:
I think that’s a great point as well!

I’ve been thinking lately about different ways to enter the market. Somewhere in the past (I can’t recall now) I saw a way to set Trailing Entry orders. This is an order type that, when the market moves against your intended position (down if you’re buying) then the entry price trails the market price to get you a better entry. Anyone seen these before? Or had success with them in the past?

Thanks and best of luck to all!

Brad

Interesting. Do you have more info on this ???

 
Brad Bonds:
I think that’s a great point as well!

I’ve been thinking lately about different ways to enter the market. Somewhere in the past (I can’t recall now) I saw a way to set Trailing Entry orders. This is an order type that, when the market moves against your intended position (down if you’re buying) then the entry price trails the market price to get you a better entry. Anyone seen these before? Or had success with them in the past?

Thanks and best of luck to all!

Brad

Hey Brands, do you have more infor on this or a good EA for such,,,,sounds really cool

 

That seems to be something magical. Could it be expatiated upon?

 

Whenyou decide to enter point this positionof market is important . Your entry and exit should be at proper time after good analysis that will ensure your profit. Good trend , analysis and proper money management can bring profit for you .

 

Thank you for the posts and I apologize for the delayed reply.

I was able to speak with some colleagues and found out the settings that allow for trailing entry orders. With that, I’m not sure if it’s anything magical, it’s simply a trailing buy stop or trailing sell stop order. The logic is that as the market moves against your desired direction, it will move the entry price in your favor; and if the market moves in your desired direction, the entry price remains where it was. So, here’s an example:

Current price is 1.3300 and you setup a trailing buy stop order 20 pips above market price, so your entry is set to buy at 1.3320. Now, keep in mind that “your” direction is up, since you are buying. If the market price moves up, (say to 1.3310) then the entry remains at 1.3320; this is the simple part. On the other hand, if the market price had moved down (against you) to 1.3290, then the ‘trailing’ entry would be moved to 1.3310. This is still 20 pips above the market price (as was specified in the original order) however your entry price is now better than it was before (because the market moved against your ‘desired’ direction by 10 pips). Now you will see that a buy entry at 1.3310 is better than 1.3320, and if the market ends up going in your direction (up, in this example) then you end up making a greater profit than without this type of order.

Here’s another example with more numbers:

Current price: 1.5000

Trailing entry to buy (or it may be referred to as Trailing buy stop order): 50 pips, or at 1.5050

If market moves to 1.4980, the buy stop entry price is changed to 1.5030

If market moves to 1.5020 then nothing changes

If, then, the market drops to 1.4800, the buy stop entry price is changed to 1.4850

Then, the market spikes to 1.4980, which triggered your order at 1.4850, and you should be floating roughly 30 pips profit (depending on slippage, if any, and/or the spread)

I have not run across any EA’s that use this type of functionality, however it can likely be added to an EA’s code. This is available on the FXCM Trading Station II platform, and if anyone would like instructions on how to use it, please let me know.

I hope this helps, let me know if there are further questions.

Thanks and best of luck trading to all!

Brad

 
UMOFX IB:
You are right traders need a good entry point for profits. I notice when we do trading just think of win from market either we are good in nalaysis or not. We should think if we enter and exit at good position then our profit is guaranteed. We have to generate profit from our skill and managed trading.

I also think same but now i have realize about this that this does not work so fully and when we start trading we may also lose but we must have to wait for some time to get some profit.

 

I agree with you. This is very interesting thread,,very informative.

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This is a very informative post. I will add this on my trading portfolio. All I can say is we need to be extra careful in closing our trades because it our only chance to make our entry more profitable.

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