Which is more important in Index Futures? Entry or Exit?

Discussion in 'Strategy Building' started by MiniDowTrader, May 1, 2006.

  1. volente_00

    volente_00



    Or maybe you should have used larger stops with a bigger account.
     
    #21     May 3, 2006
  2. One more loser's riddle classic.
    :D
     
    #22     May 3, 2006
  3. Nah, I don't like trading that way, need stops tight. Futures just weren't for me. Why need a bigger account though? I could have traded 5 contracts if I wanted to.....

    That statement didn't make much sense. At least not for me.
     
    #23     May 3, 2006
  4. Pekelo

    Pekelo

    More important? Both. More difficult? Exits. After all, the exits will determine if you are profitable or not.

    The original question is silly, in that housebuilding analogy-way:

    Which is more important when building a house: good fundament or good walls and roof? I would say if one sucks, eventually your house will suck.

    You can have an excellent entry, but you exit too early thus not making the potential of the trade, or you exit too late, thus you might even lose on an originally profitable trade. I hate those.

    But you can also have a bad entry, but with a good exit you either not losing much, or you can even turn it into a profitable trade.

    The combinations of the two:

    1. Good entry, good exit: you are the king (both are important!!)
    2. Good entry, bad exit: you either lost or didn't make enough
    3. Bad entry, bad exit: you are a loser my friend
    4. Bad entry, good exit: good money management

    In short again, BOTH are important, but exits are harder, because of money management, psychology, and you are already commited to a trade.
     
    #24     May 3, 2006
  5. Good points Pekelo. Thanks.
     
    #25     May 3, 2006
  6. Not just with index futures, the entry and the exit is is the same thing, the same decision. Grob is right – always in the market.
    There is no exit and no entry just floe\wing constantly with price/mo0mentum. Standing idle is a situation that you have not yet understood from past experience or a special situation – ie market announcement (have a power nap/do sadhana).
     
    #26     May 3, 2006