Entry is more important Or Exit in a trade to be a successful trader


#1

Lots of traders think if the the ENTRY is perfect in a trade then the profit potential is good. So they think Entry is the most important component of the trade than Exit. There are traders who think Exit is more important than Entry.

As a trader whats your thought?


#2

Both are important


#3

Both Entry and exit are equally important to me.If I enter at a wrong position or once the opportunity at hand has passed it would cost me.Same for exist as well.You can always make a safe exit in profits but exiting too late could be really costly.Target has to be set in mind when you enter a trade always.


#4

both are equally important.


#5

8% ENTRY and 12% RISK Management ( Including Exit )

80% LUCK.


#6

Do you really believe in luck ?


#7

Yes luck is most important factor in Trading

People may say things like technicals and blah blah, at the end of the day, we are just guessing


#8

If I have to choose one, Entry criteria is more important

Also more mistakes traders do in entry

More mistakes investors do in exit


#9

There is no such thing as a luck, If you don’t have trading plan ( trader personality, personal expectations, risk management rules, and trading system)


#10

I feel exit is the most crucial aspect to be a successful trader. When the trade moves in your direction, not being too greedy and at the same time not exiting too early is one thing. When the trade starts moving against your direction, setting aside your ego and minimizing your losses is also an important factor that a successful trader must have.

Picking an entry point for a trade is nothing compared to the importance of timing the exit correctly.


#11

For me, exit is decided the very moment I enter a trade. I always enter a trade with a target and stop loss, so once i have entered the trade, either I will hit target or stop loss or I will get auto squared off at 3.20.
So, there is nothing like ‘exit’ for me. I incorporate all the possible exits in the entry itself. This saves me from greed or fear attacks during trading.


#12

My personal experience is -
Exit - 80 percent
Entry- 20 percent

" Exit" is my last hurdle in making profit.
If your entry is wrong you will loose small . But if your exit is wrong you will loose more than you think.

Note- the best example is Zerodha’s technical glitch when you can enter and you can not exit your bo/co .


#13

I fell 100% Exit because that where Greed or fear comes into play and in most cases spoil the trade . Real trader is one who can overcome both and Exit


#14

HI think, there are no right answers to this question. I have seen many topics here such as what is the best quality / what is the most important / what is the right account size etc.

This is like a student going into exam and trying to pass by picking the most important /easiest chapters and skipping difficult chapters . This works only when the pass mark is 40 %. In trading only 5 to 10% survive and be successful on long term. This means the pass mark is 90%. To pass in such exams, the student got to be thorough in every chapter, Fundamental, Technical, Risk management, Trade management and in most important & difficult chapter on psychology

Unfortunately we are facing the toughest exam in the world.


#15

Which leg is more important to you? left or right leg?

If you are an experienced trader , answer to your question is very simple. Good exit strategy is always related to good risk management. So if you have a good exit strategy ( that includes stoploss) then you can be sure you will stay long in the business of trading. But a good entry strategy will help you gain significant profits.

Good trader knows his exit points at the moment of entry. Smart trader also understands risk to reward ratio before he pulls the trigger. It is not about which is more important. It is about the combination of entry and exit strategy helps you earn profits consistently. it also helps to keep your losses low and a keep your sanity to continue trading. To be a successful trader, you need to get lot of trading components right in tandem with another… Entry, Exit, Risk management, Money management, Psychology of a trader …all are some of the components of a good trade and good trader. Instead of picking and choosing which is more important, it helps to understand a trading as a sum of the moving parts!..


#16

I think entry is more important … exit can be easily managed once a correct entry has been made…agree with SureshG …balance of both entry and exit is required for a good trade


#17

Sir,
Entry point and exit point, both are very important but you have to think twice before entering and you have to exit faster when you are in doubt.


#18

In my opinion, entry is far more important because in trading my entry level will decide my stop loss, which in turn will decide my risk to reward ratio and without a healthy risk to reward ratio (>=3), I wouldn’t risk my trading capital.


#19

Everyone makes profits and losses. No one, no theory is perfect.

Now back to the question, the one who manages EXITS in a trade are signs of successful trader. Exit comes after entry and that is where all the psychological game kicks off. No body enters without solid backing of theory and analysis (whatever may it be), if you do you are a gambler anyway, but exit is where psychology messes up with theory and analysis. Always stick to fundamentals, facts, analysis, and theory, don’t let emotions play with it. Yeah! believe in intuitions but only when you have experience, which comes after learning, and learning happens when you have faced every scenario.

“EXIT for sure”

P.S. I am newbie and have traded just for a month. Writing based on my one month of “small” experience.


#20

I also faced issue on that day of technical glitch. I was making loss of around 200 and wanted to exit, when I couldn’t I ended up losing 789! 4 times when I wanted to exit. Wonder what would have happened if had traded in large QTY. Do Zerodha refund?