Traders always try to find the perfect entry point using trading systems and chart analysis tools - for them the entry point is the most important thing. Their thinking is also quite reasonable because when there is a good entry point, basically buy low when the price increases or sell high when the price falls, then we already have an advantage over other Traders.

But for legendary trader Peter Brandt, entry point is not really that important - it doesn't even determine a trader's success. So what is more important than the entry point?

1. A lesson that is hard to accept is that

Your entry point makes no sense. The only thing that matters is how you exit the trades you entered.

Spotting trading opportunities seems to play no part in a speculator's success.

Order management & risk management is the key - Peter Brandt, legendary trader.


2. Know that many times will get out of position only to see my stock grow immediately after

But I realize that's not so important as stopping losses before they get big. Besides, it is completely possible to buy back shares at any time. - Nicolas Darvas, legendary stock speculator.


3. Sometimes you can catch a wave at the beginning, and take profit almost the entire wave

But that's not the important issue.

Often the market will push you to the limit of your tolerance with stops, price traps, trailing stops and all sorts of other nasty price action.


Instead of looking for perfection (which you cannot achieve), you can accept that this is the essence of the game. And you'll still be happy with a winrate of around 50%. And you can train to be better at identifying entry opportunities and managing orders to be profitable after a string of trades, regardless of your imperfections in analysis and entry. - Lance Beggs, professional scalping trader.


4. You can have a win rate of less than 50% and still be profitable with proper risk management and big winning positions.

5. The stock market rewards those who have patience - Steve Burns, professional trader.

6. Enter 95% of your trades on breakouts. Rarely add positions on counter-pull waves. Breakthrough trading requires the skill of choosing the right time, the market context and the right market. Many of them will fail, but the few remaining will cover all the losing positions and leave the profits - Julian Komar, professional Stock trader.

7. It's easy to get to when the wind is behind you. But when things don't go well, you'll learn if you really want to be a trader or just want a quick way to make money. You will know how determined you are - Mark Minervini, wizard trader.