Re-entry Strategy

The re-entry strategy is a strategy I developed in the name of controlling your risk and minimizing losses. It involves using stop losses to sell out of a trade going south, waiting for confirmation of the down trend to end, re entering at the new low, and riding the wave back up to original the levels.

Ultimately this can allow you to cut losses to a bare minimum, while insuring the possibility that you gain back any potential losses you could have endured.

Now keep in mind, the market is volatile and unpredictable so this strategy can't be guaranteed to work on every trade, but for the most part, as we have seen; trades like to hit a sell off and then pump back up to their old levels. Very few have failed to ever retrace to old levels.

You may see red when these trades dip but I see green and more opportunity for buying.

Below are the basic rules for the strategy discussed in the video below, which is a must watch if you want to implement this strategy to it's fullest. The rules below should be simple to follow/understand but if you find yourself confused on what they mean then make sure you visit the video again were I cover the rules for each port size.

Tiny Ports ($200-$500)

  • 1x re-entry max (highly cautioned)

  • 10% stop loss on re-entry

Small Ports ($500-$1000)

  • 1x re-entry max (take small caution)

  • 10% stop loss on re-entry

Medium Ports ($1000-$5000)

  • 2x re-entry max

  • 10% stop loss on re-entry

Largish Ports ($5000-$10000)

  • 2-3x re-entry max

  • 5-10% stop loss on re-entry

You can watch our video explaining the re-entry strategy here.

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