First entry usually wrong!?

[Rambo35]

In general your first entry level is never right and the price keeps moving against your analysis. Sure, sometimes you get it just perfect. I have noticed that in most cases your first entry is usually wrong which is why I advice against placing only one order.

I always have more than one entry level as it is natural to not time the trade right, which is why I always enter my trade with 0.01 lots and after that I place a ‘real’ order. It can reduce your risk and shifts the reward ratio more in your favor.

 

[vic84]

good strategy....even i do it most of the time

 

[AndrewSW]

Hm, interesting. But what is the logic behind it. I didn't get it for 100%. Although, when you first enter, you have to consider the spread. But if you're long time trader it doesn't matter which way the price moves at the beginning.

 

[Floriano]

interesting. Also my first entry in Forex was wrong and market behaved against me. But after some trades I got my first success.

 

[Rambo35]

Hm, interesting. But what is the logic behind it. I didn't get it for 100%. Although, when you first enter, you have to consider the spread. But if you're long time trader it doesn't matter which way the price moves at the beginning.

The logic is, let me give you an example of how I do it (of course a good strategy is needed to start):

Let's say I want to trade 1.0 lots short on GBPUSD at 1.5850. Instead of placing one order for 1.0 lots at 1.5850, I will place five different orders all 10 pips apart. In total I am still trading the 1.0 lot I wanted, but I staggered my entries across the resistance zones and reduced risk to a certain degree. You will never time the entry right and it usually moves a certain amount of pips against you.

 

[rwtc]

Let's say I want to trade 1.0 lots short on GBPUSD at 1.5850. Instead of placing one order for 1.0 lots at 1.5850, I will place five different orders all 10 pips apart. In total I am still trading the 1.0 lot I wanted, but I staggered my entries across the resistance zones and reduced risk to a certain degree. You will never time the entry right and it usually moves a certain amount of pips against you.

Thanks for the clarification, now I see what you mean.