Entry Signals Are Only A Small Part Of A Complete Trading System
Entry Signals Are Only A Small Part Of A Complete Trading System
Many traders and investor are led to believe that the entry signal is the holy grail of a profitable and successful trading career. Unfortunately, to their peril, it is not. is just another part of a whole process on becoming a prosperous trader. I might even say that the entry trigger just by itself, is a really tiny portion of all the aspects you must deal with in order to profit in the markets.
Entry signals by themselves do not answer or help you face some important questions like how much should you put in that trade or when you should get out. It is not hard to find a good entry signal system; the hard task is to find a full system that makes this entry signal work for you with a proper position sizing and money management.
Even though position sizing and money management are two of the most important aspects of a trading career - I might even say they are the MOST important aspect of a trading career - most books do not even mention it. All they care is about entry setups and stuff like that. Why? Usually it is like this because that is what people look out for. People are led to believe that if they find the Holy Grail, the one entry signal setup that work under any market circumstance, they will become a prosperous and rich trader.
This could not more far from the truth. Like I said, entry signals are a small part of the whole process. Instead of worrying and researching so much, I recommend you doing some analysis and research on exit signals since they will make a big difference whether you will be a profitable trader or not. Do not take this lightly like many other; the moment you start paying more attention on where you will get out of a trade, probably will be the moment where you will start to profit.