How Long Should Your Entry Order Remain Active?

A few readers responded to yesterday's email with variations of an excellent question:

How long do you leave your entry order active before canceling it?

Remember, I changed the entry order from one that would always get filled to one that uses a limit order and is therefore not guaranteed to get filled.

Let's say a setup comes along and I don't get a fill due to the limit price on the order - the stock blows through and is beyond my limit price.

But it returns a little bit later, and I get a fill.

How long should you wait before you give up?

A lot of traders try to overcomplicate this, but there's a simple way to answer this question you should strongly consider.

Here's a hint:

If your original order had been filled, would you still be in the position?

Thinking about it that way, how long would YOU keep the entry order active?

-Dave

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