I’ve shared this idea a few times now over almost a decade and a half of writing YTC articles. Surprisingly, it’s not something I’ve heard discussed by other educators. I doubt I’m the only one who thinks this way. But perhaps that is what you get when you question common advice.
And you should always question common advice.
Often you’ll find you agree with it. As a benefit, your understanding of the advice will have improved.
But sometimes you’ll find that you disagree. Or discover that it’s not the only option. And that it may not be the best option for you.
This is one of those cases. Common advice that is safe. A wise option for new traders and for those still overly influenced by emotion.
But not necessarily the best option for those who have some skill and experience in the markets.
This image was posted to social media prior to the session open on Tuesday 13th September, reinforcing a lesson from my trading the day prior (Monday 12th).
My trade entries are simple. Press <SHIFT> and click anywhere on the chart and it places a BUY order at that price. Press <CTRL> and click anywhere on the chart and it places a SELL order at that price.
The downside of single-click entry, is that sometimes you place the wrong one.
Monday 12th September was one such day. Entry LONG when I expected to go SHORT. It became apparent when realising that the target level I thought price was approaching was actually a stop-loss order and my position was negative, not positive.
So I paused. Assessed the situation. And held the position, resulting in a nice profitable trade.
We’ll step through charts shortly.
First though, a question I received following the social media post:
Doesn’t option 2 distort your stats for that setup?
They’re already distorted by the simple fact that you have made the entry error. And yes, while immediate exit will minimise the distortion, there is perhaps a better way. Track stats for an additional setup, called “Entry Error”. This keeps them out of the normal stats. And allows you to assess your performance in overcoming these errors, or at least in minimising their damage.
Let’s look at the charts, starting with the daily for some context:
And now the 1-minute trading timeframe, stepping from the open through to our order entry error.
If I defaulted to Option 1 (Immediately scratching a position on recognising the order entry error) it would have locked in a seven point loss per contract.
Doing so would fail to consider the fact that there was no immediate and serious threat.
Doing so would fail to consider that price had bottomed out and was holding above the stop.
Doing so would have missed the opportunity to work the position out of its current drawdown and take it to profits.
No, it doesn’t always work out. As with any trade, sometimes the position falls on the losing side.
But if you assess no immediate and serious threat, then at least pause for second or two and consider options. If you had entered right here, right now, would you hold the trade? Or would you immediately scratch it?
If you’d hold, then TRADE IT.
You’re a trader. So trade.
One final comment… and another option if you prefer:
Hi, Lance !
My question is not related with trading but with the way you enter orders. You say you can enter orders at some price by pressing / plus a click of the mouse. How do you do taht ? I have try to enter that way but I haven’t found the option in the NT8 menus. I even have read in the NT8 forum that it is not possible to do that. Could you please tell me how you have configured that ? I think is a a fast way to enter oreders.
Thanks and congratulations for all the info you share
Entry was made via ClickTrader – http://ninjatools.studio/
There are alternatives to check out as well which I’ll consider in future if I encounter any problems with Click Trader.
There could also be more now, since compiling this list a while ago.