Entry
The point at which you open a position — chosen in advance, with a defined trigger and invalidation.
Full explanation
An entry is the moment a plan becomes a position. A complete entry has three parts decided beforehand: the trigger that makes you act, the invalidation point that says you were wrong, and the position size that makes the risk acceptable.
Entry location determines almost everything else. Entering near your invalidation point keeps risk small and makes a favourable risk-to-reward ratio possible; entering after an extended move usually forces a wider stop loss for the same objective.
Chasing — entering late because price is moving without you — is the most common entry error, and it reliably worsens both risk and reward.
Why traders watch it
Good analysis with a poor entry still loses money, because it leaves no room for normal fluctuation before the invalidation point is hit.
The Trading Plan never issues entry signals. It provides the context, levels, confirmation and timing so you can choose an entry that fits your own strategy and rules.
Trading considerations
- Know your invalidation point before you enter, never after.
- If the trade has already run, the entry has passed — wait for the next one.
- A trade you cannot describe in one sentence should not be taken.
Educational guidance only — never a trading signal or recommendation.
Related indicators
Confirmation
Observable evidence, defined in advance, that a setup is doing what you expected before you commit.
Drawdown
Drawdown is the fall from an account's peak value to its subsequent low, expressed in money or as a percentage. It measures the pain of a losing run rather than the final result. A 20% drawdown needs a 25% gain to recover, and the deeper it goes the harder recovery becomes, which is why controlling drawdown matters more than chasing returns.
Risk-controlled plan
A plan where the loss on every trade, and for the day as a whole, is decided before the market opens.
Risk-to-reward ratio
The comparison of what you stand to lose against what you stand to gain on a trade, calculated before entry.
Stop loss
A pre-set order that closes a position once price proves the idea wrong, capping the loss.
Take profit
A pre-set order that closes a position at a chosen objective, taking the gain automatically.