Home > Lessons from the trading floor > $Debbie: What about reentries on a trade?

$Debbie: What about reentries on a trade?

Many challenges are presented to every trader throughout any given trading day. One that Debbie has overcome in the short term but continues to work on   is renetering a good trade idea after taking a loss on the first entry. Similarly, a cousin of this concept is finding the next good trade after taking a loss on a poor trade or a trade that does not follow through.

Two examples:

1. Last week in ORCL, a stock that was in an intraday trend, I had booked my profits and then when it gave a continuation signal I looked for a pause to reenter. When I reentered, the pause turned into a pullback in which I got caught in. I took a loss on that trade but reentered as soon as I recognized that the pullback had ended.

2. Yesterday morning in MRK, a stock that was strong and broke out  on a trending day, I got stuck when MRK stalled and then went on to pull back .20 cents or so. I took a loss. However, immediately I saw one of my scenarios (ORCL) setting up and because I had planned for the scenario, I did not have to think. I just got in because I saw the signal that I had been watching for.  

Moving on from prior trades is key to being successful in this business. And moving on from past trades is what reentering a trade is really all about!!

 

Profitable Trading All!

 

Debbie

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