Re-Entry
A re-entry is opening a new position in the same idea after a previous one was closed — for example after being stopped out, if the setup forms again.
Sometimes a stop is hit and the idea then works anyway. A re-entry opens a new trade in the same idea if the setup forms again. Done well it follows rules; done badly it becomes revenge trading.
- Category
- Trading Strategies
- Reading time
- 3 min
- Also called
- Re-entering a trade, Second entry, Trade re-entry
- Updated
Re-entry in plain words
Choppy markets can stop you out of trades that would have worked out in the end.1
Revenge trading is the urge to win back losses fast with extra trades — often bigger and less convinced.2
For every trade, write down why you entered, your stop and your target.3
How to plan a re-entry
Pause first
Take a short break after the stop-out.
Check the setup
Ask whether the original Trade Setup and Entry Trigger has formed again.
Avoid revenge
Check you're not just trying to win the loss back.2
Watch the approach
Prefer calm, tightening price action over sharp, wild moves, which often produce false breakouts.4
Write it down
Note your reason, stop and target before re-entering.3
Keep normal size
Use the same Risk per Trade, not a bigger one.
Worked examples
Example 1 — Planned re-entry
Second chanceA hypothetical trader is stopped out, then the setup forms again and works.
| First trade | −1R |
| Re-entry | +2R |
Whipsaw movements that stop out traders can be handled with a rule-based second entry.1
Example 2 — Revenge re-entry
RevengeA hypothetical trader doubles size straight after a loss.
| First trade | −1R |
| Re-entry | −2R |
Jumping back in bigger and less sure turned one loss into a larger one.2
Example 3 — Waiting it out
Stayed outA hypothetical trader sees a sharp spike back above the level and does not re-enter.
| Spike | Sharp, volatile |
| Trade | Skipped |
Sharp, volatile approaches often produce false breakouts, so the trader waited.4
Planned re-entry vs revenge trade
| Aspect | Planned re-entry | Revenge trade |
|---|---|---|
| Trigger | Setup forms again | Anger at a loss |
| Size | Normal | Often larger |
| Timing | After a pause | Immediately |
| Record | Written reason | None |
Where re-entries are used
After a stop-out
Getting back in when the Trade Setup and Entry Trigger returns.
Trend trades
Rejoining a Trend after a shakeout.
Breakout retries
A second try at a Breakout.
Journal reviews
Tracking re-entries in a Trading Journal.
Advantages and disadvantages
Advantages
- Keeps good ideas alive after a shakeout.
- Can be fully rule-based.
- Helps after whipsaws.
- Encourages written reasons.
Disadvantages
- Easily turns into revenge trading.
- Adds to total losses if the idea is wrong.
- Can increase trade count.
- Hard to judge emotionally.
Going deeper
Read as far as you need. Each level builds on the one before it.
What it is
Beginner
Whipsaws can knock you out of good trades; a re-entry is a planned way back in.1
The emotional trap
Intermediate
Revenge trading is the opposite of a planned re-entry: fast, bigger and less convinced.2
Reading the setup
Advanced
Violent approaches often fake out, while slow, tightening price action tends to come before real moves.4
Common mistakes
Re-entering instantly
Emotion is still high.
Bigger size to win back
Raises risk of ruin.
No new setup
Same idea, no new reason.
Unlimited retries
Set a maximum number of attempts.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- A re-entry is a new trade in the same idea.
- It needs the setup to form again.
- Keep normal size.
- Avoid revenge trading.
- Limit the number of retries.
Frequently asked questions
How soon can I re-enter?
Should I use a bigger size?
How many re-entries are fine?
Further learning
- Tilt
Emotional trading after losses.
- Trading Plan
Writing re-entry rules.
- Trade Setup and Entry Trigger
What must form again.
- Trading Journal
Tracking re-entries.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- IG. Range Trading Explained (opens in a new tab) Checked .
- CMC Markets. Trading psychology explained: The mental side of trading (opens in a new tab) Checked .
- IG. Building consistent trading habits (opens in a new tab) Checked .
- CMC Markets. Breakout trading explained: Strategies, risks & how it works (opens in a new tab) Checked .
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.