I want to talk about why your day trading entry is so important both
mentally and financially so stay tuned so I hate to keep talking about it but J
I ll I think this is a really really good example just showing you guys why
entries are so important why it's so important to wait for the right entry to
go into the trade with a plan and have that plan ready so J I ll this morning
it gapped down what I think after hours yesterday it actually gapped down from
the ten dollar area they cut earnings it wasn't good bad news for this company
it's a retail clothing company it's it's not good so you can see obviously this
drop down from $10 down there to six dollars and then pre market this morning
it's been selling off so I woke up this morning I saw it there at the six dollar
area I couldn't trade it until eight o'clock that's one store trader opens so
you can see here at 8 o'clock it got up there it was at 585 I ended up thinking
we're gonna get this breakthrough the 560 area once people started able to
trade it there at 8 o'clock and it ended up bouncing off 564 a little bit you can
see it bounce off 564 about 15 minutes here and I had 2,000 shares and I had a
really bad injury so I got in there my first thousand shares I got in there at
561 the second thousand I got in there at 565 which was a little bit better but
still not that good at the time there was a bit of a spread the better entry
would have been here at the 570 area with the idea okay you know 570 you got
my stop at the 580 and that way I had a little bit more wiggle room well if I
got in there at the 560 area my stop was still 580 but that was a 20 cent loss on
2,000 shares that's foreign dollar loss it's a lot more to handle emotionally
and financially so if I take a big loss on that trade it's not gonna be good
looking at it now hindsight's always 20/20 it's easy like wow that was
actually a really good entry I could have just held that and sold and cover
down here at the 48 year but at the time there was that support there the 560
area and I was basically shorting into that support thinking that support was
going to break which it ended up doing but at the time there was a buyer
sitting there that was buying that 560 area and I was like oh man I don't
really like this maybe this is gonna start to come back higher you can see it
actually popped up there the 580 area a couple times and I was kind of holding
through it thinking okay I think we're still gonna
go lower you know this got really bad news I think we're at least we're gonna
get back down to the 560 area one more time and we ended up getting back down
there to the 560 area at that point I was like okay I'm back in the green here
I'm just gonna take my profit and ended up selling ended up covering 50 hundred
shares here I kept 500 shares in case we did break through 560 which right after
I covered we broke through 560 it dropped down here to 550 and then on
this candle down there - 535 you know looking at the one-minute talks a little
easier to see here that 560 support it was bouncing off that 560 area for a
while that buyer there at 560 was buying it jumped up there right away to 575
pretty quickly and I was kind of worried that oh man this is gonna this might
this you know balance here of the 560 area go higher so already going into
that trade I was already at a loss because mentally I'm thinking I know
that supports there I don't have a very good intrigue I wanted that intrigue the
570 area but instead I got a little greedy I got a little bit of FOMO and I
ended up getting in there at the 560 area so right there
that's a bad sign it was a bad way to go into the trade I was already mentally
emotionally like oh this is not a good trade so going into the trade with that
bad entry there I'm thinking okay this is not good I'm thinking of myself I
might need to cut my loss fast I didn't get myself enough wiggle room there and
ended up getting out there for breakeven basically on that trade and made a
little bit on the downside there when it drops but you think about it if I have
2,000 shares there at 560 and I would have covered down here at the for ATS
let's say I would cover it here at the five dollar area right before open which
would probably know better when you know even 515 area I still would have made
close to $1,000 on this trade but instead I made about seventy bucks if
I'm going to go into these trades with larger size if I'm going to go into
these trades with a bigger plan and make more money I really need to focus on
getting the best entry you can see I got here short at the 565 area I could have
gotten short one more time here at the five seven years so had time I could
have gotten that 570 area easily I could have got filled here at 570 and then
held that short there on this spike so it's really important to focus on your
entries entries are very important both emotionally and financially not just for
making money but going into the trade if you get a really good entry you're gonna
be able to emotionally handle that trade a lot better if you get in on amazing
dip you're like wow I got an amazing dip
here I'm already in the green I can let the stock ride a lot higher where if I'm
buying on an extended if I'm buying on a stock that's already extended if I'm
buying on a stock that's already raining up a bunch I don't have a very good
entry I'm gonna take profit a lot faster so it's very important to focus on your
entries I can't express it enough I really try and tell myself
because that is something I need to work on but I really need to focus on my
entry so getting in on a winning trade getting in on a trade that did end up
working out but getting in on that trade and not having a good entry ended up
emotionally and mentally kind of making me think okay I might even cover because
it might explode you know I have a very good entry here how much wiggle room and
that's what happens so I would have been a lot better off just waiting for that
bounce off the 560 area a couple times or waiting for that 560 area to break
the 560 area to break and then I could have shorted here I had the 550's once
that resistance popped up there you know the trade it was there the trade was
there no doubt about it but in general this is very important I
need to work on my entries work on getting the best possible entries and
that's something I think a lot of day traders need to work on and like I said
personally I'm gonna work on that as well so if you guys are getting into
trades and you feel like you're taking profits too fast
think about your entries think about what entry you're getting are you
getting a good entry are you chasing a stock are you not waiting for the
pullback so you're not getting good entries in general and that's gonna make
you take profit faster I do the same thing if I get a bad entry a lot of
times I take profit a lot faster because I know ok I got a bad entry here this
isn't that good of a trade I don't have that win I don't have that cushion that
I want on a good dip buy or something like that so it's very important to
focus on your emotions and just overall in general you know keeping your
emotions in check and controlling your injuries and getting the best possible
entry if I got a good entry here on J I ll getting here at the 570 area I
probably take a profit you know down here at the 520's 515 and how we had a
lot better trade here on J I ll so just basically proving the point that entries
are very very important not just financially but also emotionally
mentally