This is why your TRADE ENTRY Doesn't Matter

The trade entry is the least important part of any trading system, and ironically, the more you try to improve it, the more likely you are to lose. A random coin flip is just as effective. Let me explain why that is and what you need to do instead if you want to become a profitable trader. The first and most obvious thing to understand is we don't make money when we enter a trade. We make it when we close the position. An open position could be in a massive unrealized profit, but if you don't close out, it could eventually turn around and end up as a loss, and vice versa. You could be in an unrealized loss, but if you leave it open long enough, it can eventually turn around and end up in profit. The only thing that matters to your account balance is when you close a position. So, in other words, the exit. Now go to any trading forum or any of the fake Guru seven courses and see how much they talk about the exit. You'll be lucky to find any mention of it. Any. Anywhere at all. All. The emphasis is always on the entry. And it's a distraction to hook inexperienced, naive beginners. 98% of traders are obsessed with the entry. 98% of traders fail. The crowd are wrong about everything. Being profitable has nothing to do with how you enter. It has everything to do with how you exit. But I hear you say, surely it is important to pick the right direction. We've got to get that right to begin with, don't we? Isn't that common sense? No, we don't need to pick the right direction ever. As I've already said, you can enter a trade having picked the right direction, but if you don't close while it's in profit, it will eventually reverse and end up as a loss. Or the price can go in the wrong direction immediately after you enter, but at some point reverse and end up as a winner. The direction immediately after your entry is irrelevant. All winners can turn to losers and all losers can turn to winners. It's the timing of when you exit, but the turning is the outcome, and the entry plays no part in that. Now, people do all kinds of mental gymnastics to try and convince themselves that the entry matters. Because their ego needs to believe that they have some control and it's their skill that resulted in the win. But that's an illusion. It is an incontestable fact that that money is only made or lost when you exit a position. And therefore the exit is what you should focus your attention on. And I'll explain how to get that right in just A moment. But on the topic of picking the right direction, this is actually what takes the entry from being meaningless to being harmful and causing you to lose 99.48% of all price moves from tick to tick in the Forex market are random. That's a mathematical fact. It's well established and understood by anyone who looks at the institutional data. All markets are predominantly random most of the time and it is impossible to predict anything in random market conditions. Now what that means is price direction can only be predicted 0.52% of the time on those rare occasions when the conditions are non random. In other words, the best, most highly skilled and technically advanced traders only have the chance to even try and predict the price direction half of 1% of the time. There really isn't much of an edge at all. To all intents and purposes, we can say that predicting price direction for all but the most elite traders is impossible. And even for the elite traders, their entry is only a fraction better than a 5050 con flip. So when you see all the fake gurus boasting about their high win rate, they are either lying or they just don't understand what prediction means. How? Having a 75% win rate doesn't mean you've predicted the price 75% of the time. It simply means having a stop loss three times further away than your profit target. A 30 pip stop loss and a 10 pip take profit will give you a 75% win rate. But you won't make any money over the long term in a random market. That's not a profitable system. Look, you can give yourself a 1900% win rate if you want. Just have a 1 pip take profit and a 99 pip stop loss. It's still a losing system after you've deducted the commissions. Win rate has nothing to do with predicting price correctly. To legitimately say you've predicted the price, you would have to have equal size stops and profit targets of, let's say 10 pips each and you would need to win more than 50% of the time. Very few traders can statistically demonstrate they are able to do that. And most profitable traders don't even try to predict the direction because they know the entry doesn't matter. So if the entry is more or less a coin flip, even for the best traders, how do winning traders get their urge and outperform the losers by such massive amounts to be able to make big profits? The exit. The winging edge is on the exit, not the entry. And not surprisingly, the exit is something only a tiny number of traders pay any attention to and why only a tiny number of traders ever succeeded. Now, I'll explain the best exit with the highest edge in just a moment. But first, when people believe the entry is important and they foolishly believe they are predicting the direction, they certainly guarantee they will always be a failing trader. The entry can actually be the biggest cause of long term failure. And the reason why is this. If you believe a certain pattern on a chart will predict the price direction, when it doesn't, which will be about 50% of the time, you're left with only two conclusions. Either the system doesn't work and that pattern doesn't predict the direction, or you're just not good enough. Then you've made a mistake. And it doesn't matter which conclusion you come to, the resulting response from you is the same. You put even more time and effort into the entry. You either go looking for a new system with a new better entry, or you try to improve your skills at reading the chart patterns so that you're able to identify that good entry better. And both things are doing the same thing. They're trying to improve the entry. And that is a complete waste of time and energy. You will forever be trapped in a cycle of trying to improve something that can't be improved because it's basically random. Such a futile endeavor. But equally, it doesn't need to be improved. The entry isn't your edge. When you realize that you free yourself from all of the emotional baggage that cripples most trailers. You. You can't be right or wrong about a coin flip entry. There's no skill required. It's random. Where the price goes next is not a reflection of your decision or skill. So you take your ego out of the equation altogether. And when you detach your ego from the need to be right or wrong, revenge, trade in and other ego driven mistakes cease to be a problem. It's very liberating when you realize the entry doesn't matter and in no way impact your profits. It's one of the easiest ways to get on top of your emotions. So what do you focus on if you want to be a profitable trader? Well, obviously it's the exit. And the best way to do that is to use a trailing stop that scales up time frame from low to high. And what I mean by that is to enter a trade on a short time frame with a tight stop loss. And if that trade loses, so be it. Losses are part of trading, but when it goes into profit, gradually change the chart timeframe higher and higher until you are eventually managing it on a daily chart. So a trade that starts out with a 10 pip stop loss can end up as a 2 or 300 pip stop loss, having already locked in several hundred pips in profit and can remain open to capture long term trends of thousands of pips. And the longer you leave a trade open the more you are catching those rare non random market conditions which are essential if you want to be able to profit over the long term. If you had one 1000 pip winner, that's the same as making 10 pips a day every day for five months. Now I can tell you that making 10 pips a day consistently is next to impossible. You've probably tried something like that and failed, so you know how hard that is. But getting one 1000 pip winner at some point in five months is not only easy, it's almost guaranteed. I'll leave a link in the description and in the end screen to my previous video where I explain a full trading system with this exit strategy in detail with vis visual examples. It's the most profitable edge you are likely to find in an exit strategy. Now in that system I'll use coincidence strength analysis for the entry which does give you an advantage because of a unique characteristic or forex, so it is well worth using. But as you've just seen, it's still a small advantage in the grand scheme of things. And honestly, you can use a conflict for the entry if you want and it won't make much difference as long as you keep the rest of the rules the scene, especially the exit. The exit is the most important part of any system. The exit is your edge and the exit in that system is the most profitable and reliable I've ever seen or used. If you find this video interesting and you'd like to see more of these simple no frills videos, please let me know in the comments because I can do several of these each week if they're of benefit to you. So it's a much quicker way for me to get my knowledge across for you and it would help me out if you could give the video a like and consider subscribing if you if you want to be notified when I do upload future videos. But thanks for your engagement today and hopefully I'll see you again next time.