In simple terms
“Bad entry” means that the entry price, timing, or execution appears unfavorable. The label is useful only when compared with the written plan, not with what the chart revealed afterward.
How to review it
Separate four items in the journal: conditions in the entry reason, whether the trigger existed, requested price versus actual fill, and initial size and risk. A late order may be an execution mistake; trading before the signal may be an early entry; accepting any price may be chasing.
Example: the plan required a break above 100, and the order filled at 101 because of slippage. The signal may have been valid while the execution was worse than expected.
Limit
A losing trade does not prove a bad entry, just as a profit does not prove a sound process. Entry quality is judged from information available at decision time and from repeatable rules.
Sources
- CME Group, Trading Strategies in Your Trade Plan — calls for defined entry criteria, trigger points, and exits.
- FINRA, Order Types — explains why a displayed quote and execution price may differ, especially in fast markets.