Those who have followed YTC for a while will know that I'm a big fan of re-entry.

It's a personal preference. I much prefer a tight stop and the need for occasional re-entry, over a wider stop that might give a trade a whole lot of room to prove itself.

I typically allow two attempts at a trade. If the first is stopped out and the premise remains valid, I'll often seek a way back in. (NOTE: The premise MUST remain valid. We don't just try to re-enter every stopped out trade!)

I wasn't always comfortable doing this, in the early days.

And I know for a fact that many readers find it difficult as well.

From a mindset perspective, it asks that you put aside the fact that you just lost money on this very same trade idea, and place more money at risk.

And your thought process is probably fixated on the idea of "what if it loses again?"

<image: Proving your edge in re-entry>

<image: Proving your edge in re-entry>

<image: Proving your edge in re-entry>

<image: Proving your edge in re-entry>

<image: Proving your edge in re-entry>

<image: Proving your edge in re-entry>

<image: Proving your edge in re-entry>

<image: Proving your edge in re-entry>

<image: Proving your edge in re-entry>

<image: Proving your edge in re-entry>

Consider this – I could lose on my next four to five re-entry trades and I'd still be in front.

Edge doesn't require that you win on every trade.

There will be winners and losers. Both are fine. As long as your stats prove edge over a larger series of trades.

So if you struggle with re-entry, with thoughts of "what if it loses again" leading far too often to hesitation and doubt, maybe consider the following plan.

For the next twenty re-entry trades, let's try to prove once and for all whether they do provide you with edge.

Like this:

(1) Create a new copy of your Trading Journal Spreadsheet with one setup – "RE-ENTRY". The aim is to initially keep the stats separate from other setups and from other trading.

(2) Do NOT take re-entry trades live. There should no longer be any thoughts of "what if it loses again" because… who cares if it loses… you're not really in the trade.

(3) Take the trade either on sim (if your platform allows switching execution between live and sim) or else just on paper.

(4) Track the results in your separate Trading Journal Spreadsheet.

(5) And prove, over that sample of twenty trades, that you do have edge.

Or prove that you don't. At least then you know for sure. And you can either abandon the idea or use the data you just gathered to find a way to improve and build edge where there currently is none.

Nothing improves trade decision making and confidence like actually SEEING proven edge over a series of trades.

And if you want to continue to monitor this going forward, as you start taking them live, maybe you could continue to track re-entry trades separate from other setups. Make "RE-ENTRY" its own setup. This allows you to continue to monitor the edge over further samples of data. And hopefully, if the edge is proven, continue to build confidence in this highly valuable trading skill.

If you lack confidence in your re-entry edge, the best way forward is to test that edge. Commit to a full series of re-entry trades on sim, alongside your normal trading. Record results. And review.

Twenty re-entries minimum.

Go for it.

Lance Beggs



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  1. Great post, as usual. I know this is something many traders struggle with. On the flip side, many also struggle with the automatic re-entry after being stopped, like you mention (the dreaded revenge re-entry). The revenge re-entry is something I have struggled with on and off at different times during my trading career. The part where you talk about stepping back, pausing and reassessing whether or not the reason for the trade is still valid before re-entering is a priceless piece of advice for traders. I was fortunate enough a couple of years back to have a review session with Dr Steenbarger in which we addressed this very subject. The way he put it, which has helped me (and hopefully will be helpful to others reading your post, was, “Don’t re-enter, re-plan.” As part of that re-plan, ask yourself what you need to see to make you want to re-enter and what you need to see to invalidate your trade idea and pass on re-entry. Thanks you for all your insightful posts on trading. Although this is the first time I have posted a response, I have been following your posts for a couple of years and find tremendous value in them.

    1. Hi Michael,

      Thanks for the great feedback. I’m really pleased you’re finding value in my writing.

      “Don’t re-enter, re-plan.”

      I love it. What a great way of expressing the concept. And 100% true. Every entry, whether the initial or any subsequent re-entry attempts, MUST stand alone in its own right as a valid trade. Step back and reassess. Because the re-entry is not always the wisest option, given the new information the market has provided.

      Thanks again. And much appreciated for the great comment.


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