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Trading glossary · psychology

entry rule

A rule you write in advance that says exactly when you are allowed to start a trade.

The fuller meaning

A precise, testable condition for opening a trade, such as 'enter on a daily close above the range high' rather than 'enter on strength', so you and a backtest would take exactly the same trades. Changing entry rules after missing a big move is a classic FOMO mistake.

entry rule.

Related words

anchoring · boredom trading · chasing · cognitive bias · confirmation bias · consistency · cool-down rule · discipline · disposition effect · emotion