What Makes This Trade Great: The Power of Reentry Opportunities

What Makes This Trade Great: The Power of Reentry Opportunities

Jan 28, 2025

By Barrie Einarson

One of the most important lessons in trading is learning how to stay adaptable. Not every trade will work out perfectly on the first attempt, but that doesn’t mean you should walk away from it altogether. Today’s example focuses on $BKSY, a short opportunity identified by Trade Ideas’ AI, and how the reentry price column can give you a second chance to capitalize on a trade. To Subscribe: https://go.trade-ideas.com/SHQ
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The Setup

$BKSY was flagged as a short opportunity with an entry price of $16.40. Unfortunately, the stock popped and hit its stop-loss at $17.15. For many traders, that would have been the end of the story.

But here’s where the reentry price column becomes a game-changer.

The Reentry Opportunity

The reentry price for $BKSY was calculated at $16.77—the midpoint between the original entry price ($16.40) and the stop price ($17.15). This feature automatically identifies key levels where you can consider reengaging with the trade.

For those who entered at $16.77, the trade delivered a big payoff, with the stock eventually dropping to $13.86 before reversing. That’s a substantial move that would have been missed without this feature.

Key Lessons

This trade highlights some crucial points for traders:

  1. Don’t Give Up Too Soon: Missing the first move doesn’t mean the trade is over.
  2. Use Your Tools Wisely: Features like the reentry price column are designed to help you spot fresh opportunities.
  3. Adaptability is Key: Trading is all about being flexible and staying ready to act when opportunities present themselves.

Why This Trade Matters

The ability to reenter trades that initially don’t go as planned can make a significant difference in your trading success. By adding the reentry price column to your workflow, you can uncover additional opportunities and take advantage of market movements others might overlook.

If $BKSY is any indication, sometimes the second chance is the best one.

Stay disciplined, keep learning, and as always, trade smart.