Missing your entry on a trade can be frustrating, but how you handle it can cause the outcome to result in a loss. The first mistake was made when you missed the entry. The best way to respond to this is to ‘sit on your hands’ and let the move complete itself; do not enter the trade late! While you wait for the next pattern, immediately start planning your next trade – using if/then scenarios, studying support/resistance levels and market trend/signal changes.
Experienced traders know from their day trading training, they will not be in every move. They are confident the market will offer more opportunities should they have to sit one out. They also know that entering a trade late may open them up for additional risk and so will either not take the trade or re-size/re-plan their position accordingly. They also know by stopping after the first mistake, they risk losing no money.
Mistake #2 is made by taking the trade after it passed your pre-planned entry point. In some scenarios, entering a trade late can be fine (for ex. Market wide runs or pivots), however most of the time, entering a trade late ends up red and not worth the risk. The problem is timing… by the time your order goes through, you’ve missed the meat of the trade and you don’t know where it’s going to peak or pull back…. Most of the time, it’s sooner than you thought.
For beginners/intermediate traders, the best advice is to let the missed entry trade go by and wait for the next opportunity. Advanced traders know the importance of having patience and waiting for the right pattern. They also know what market conditions to look for when it’s OK to get in late. Learning this information can be crucial to your success as a day trader… And it’s exactly what we teach in our Limitless Volume day trading training course! Click the link to check out our curriculum.