What Makes This Trade Great: The Power of the Re-Entry 🎯

What Makes This Trade Great: The Power of the Re-Entry 🎯

Jan 12, 2026


Hello everyone,
Barrie Einarson here from Trade Ideas, with another edition of What Makes This Trade Great.

Today’s example comes straight from our AI—OPTX—and it highlights something I talk about all the time: the importance of re-entry. To Subscribe to Trade Ideas:
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The Initial Short Setup

The original short signal triggered around $6.10, marked clearly by the blue arrow. Right out of the gate, the trade did what we wanted—it dropped down to about $5.72.

That’s a solid move. If you took partial profits there, great job. If not, no problem—because discipline matters.

Respecting the Stop

After that initial drop, the stock bounced. If you stayed in too long, the suggested stop would’ve taken you out. And that’s okay. Stops are there to protect capital—not every trade needs to be a home run on the first try.

The Re-Entry Opportunity

Here’s where things get interesting—and where experience really pays off.

I always emphasize this:

Watch the halfway point between the original entry and the bounce high.

In this case, that re-entry level came in around $6.19.

If you missed the first short—or got stopped out—you had a second chance right there.

The Real Payoff

From the $6.19 re-entry, the stock rolled over beautifully and dropped all the way down to approximately $5.07.

That’s a powerful move—and a perfect example of why patience, structure, and re-entries matter.

The Takeaway

  • First entries don’t always give you the full move
  • Stops are part of the process, not a failure
  • Re-entries can be where the real money is made

Trades like this remind us that great trading isn’t about predicting—it’s about executing a plan and letting probabilities work in your favor.

See you in the next one.

Barrie