Definition of Entry point:
The time when an investor decides to acquire an investment.
Entry point refers to the price at which an investor buys or sells a security. The entry point is usually a component of a predetermined trading strategy for minimizing investment risk and removing the emotion from trading decisions. A good entry point is often the first step in achieving a successful trade.
In order to participate in an investment, one must engage in a transaction, buy or sell, that allows them access to the desired security and the price at which they transact is the entry point. For example, an investor researches and identifies an attractive stock, but feels that it's overpriced. He or she will buy if the price decreases to a certain level. This is defined as the entry point. Exercising patience and waiting for the right time to buy helps investors earn better returns on their investments. Determining both an entry point and exit point in advance is important for maximizing returns. Investors must ensure there is sufficient distance between the entry and exit point to allow a risk-reward ratio that is conducive to sustained portfolio growth.
How to use Entry point in a sentence?
- Entry point refers to the price at which an investor buys or sells a security.
- A good entry point is often the first step in achieving a successful trade.
Meaning of Entry point & Entry point Definition