Entry Price Dependency

Entry Price Dependency is the cognitive tendency to let the price at which one entered a trade dictate the entire lifecycle of that trade. This creates a rigid mindset where the trader only evaluates the position relative to the entry, ignoring the evolving market structure.

If the market thesis changes, the entry price becomes irrelevant, yet traders often struggle to accept this. This dependency prevents the implementation of dynamic stop-losses or profit-taking targets that should be based on current volatility and market levels, not past history.

It is a major obstacle to professional, objective trading.