The entry price
The reference point everything else is measured from.
Understand why the moment of entry matters more than the direction itself.
Step 1 of 2
Impulse
An impulse is a fast move. A correction is a slow pullback against it.
The entry price is the level fixed in the second the button is pressed. Everything afterwards is judged against it: above or below.
From which follows something less obvious: the right direction with a bad entry point loses. If you enter at the end of a sharp move, price has already covered the distance you were counting on, and the most likely next scenario is a pullback against you.
- The worst entry: the end of a vertical impulse
- The worst entry: the middle of a range with no level nearby
- A working entry: price reacting to a tested zone
- A working entry: a correction ending inside a live structure
On the platform the entry price is fixed instantly, with no way to choose a level in advance. So the moment you press is your only control over the entry point.
A delay of two or three seconds on a fast market can move the entry enough for the idea to lose its sense. If you hesitated, it is better to skip than to enter chasing.
Key takeaways
- The entry price is the reference point for the result of the trade.
- The right direction with a bad entry loses.
- If you hesitated, skipping beats entering in chase.
A note from Leon Mercer Academy
Before pressing, ask one question: if I enter right now, how far has price already travelled from the level? If it is far, you are late.
The usual mistake
Entering “to catch it” when the move has already happened. Your reference point at that moment is the worst available.
A practical example
Take M1 and mark a vertical move of five or six large candles in one direction.
Imagine entering with the move on the last candle. Now look where price was two or three minutes later. In most cases it is lower for a buy and higher for a sell — which is exactly why entering at the end of an impulse is so expensive.
Lesson 2 of 15 in “YOUR FIRST TRADE”