The One Thing That Will Change How You Trade: Setup vs. Entry Model
The Thursday Trader's Tip is your weekly performance edge in under 5 minutes. Want access to coaching tools, mental frameworks, and live masterclasses? Upgrade to paid to get the full experience:
In working 1:1 with traders, here’s one specific thing that, when fixed, changes everything in performance:
The difference between a setup and an entry model.
I see all traders have their setups, but many don’t have a clear, specific entry trigger.
That’s a huge gap that leads to all sorts of mistakes:
Entering early
Entering too late
Doubting the setup
Relying on hindsight
Poor risk-reward ratios
It’s time to close that gap once and for all.
Setup and Entry Model: Two Different Things
Let’s clarify: your setup and your entry model aren’t the same.
Setup: This is your edge—patterns, confluences, parameters that, when aligned, tell you a trade might be coming.
Entry Model: The specific, objective trigger that tells you, “Now’s the time to enter.”
Your trading system has 5 main components:
Your setup(s)
Entry trigger
Trade management
Exit strategy
Risk management (risk per trade)
They’re all connected but independent. You need clarity in each one to be consistent.
Why Having Just a Setup Isn’t Enough
Most traders think their setup is enough to guide their entry. But it’s not.
A setup alone is broad—usually on higher timeframes—and doesn’t tell you exactly when to get in. It’s just the “potential” for a trade.
That’s why we add an entry trigger—a clear, specific signal that confirms it’s time to act.
For example:
A breakout is your setup.
But when do you actually enter?
Do you buy immediately when it breaks out?
Or do you wait for the candle to close above the level?
See?
Most traders think they have their entry trigger figured out, but when we start their coaching journey, they realize they don’t, and that’s a major source of their mistakes. If not addressed, we can’t talk about psychology & performance.
If your foundation—your system—is flawed, progress will always be limited.
It’s like trying to fill a leaky container. No matter how much water you pour in, if there’s a hole at the bottom, it will never hold. Fix the hole first, and everything else becomes much easier.
The Power of a Clear Entry Trigger
Here’s a simple but powerful tip:
Enter only after the candle closes.
Why? Because it adds clarity. It makes your decision objective. No more guesswork. No more doubt.
When your entry is precise, it’s easier to track your performance, evaluate your trades, and improve. It’s a game-changer.
But Won’t Waiting for Candle Closure Hurt My Risk-Reward?
Yes, it might, but here’s the thing: clarity is worth it.
If you jump in too early, you risk entering at the worst possible spot and then regretting it.
Waiting for candle closure might give you a worse fill in the market, but it gives you confidence and consistency. And guess what? Consistency is the whole goal.
I can’t tell you how many traders exponentially improved their performance with this simple change.
But it requires one thing:
✨Letting go of perfectionism✨
The idea of the perfect entry is an illusion. You’ll never find the perfect balance between entry confirmation and risk-to-reward — you gotta give one in, and it’s better not to be the entry clarity.
There are ways to improve your RR other than seeking perfect entries. But never compromise on having an objective trigger to enter.
Final Tip: Improve Your Entry Accuracy
If you want to let go of FOMO in the entries, then:
Use lower timeframes for the entry trigger.
Never enter earlier without confirmation just to chase a bigger reward.
Remember: a poor entry destroys even the best setup.
Ask yourself today:
Do I have a well-defined, objective entry trigger?
If not, create one. If yes, stick with it.
Your results depend on it.
Peaceful trading,
Sara
Related Reads:
Thanks Sara - it doesn't matter how many years you have been trading (me 25) but I have been re-reading your post all week as I instinctively enter my trade but have now refined it with specific entry rules - thanks again your work makes a HUGE difference no matter how long you have been trading.