---
title: 'We''ve All Been There... #trading'
source: 'https://youtube.com/watch?v=Qj5diAo8nYY'
video_id: 'Qj5diAo8nYY'
date: 2026-08-10
duration_sec: 86
channel: 'SMB Capital'
---

# We've All Been There... #trading

> Source: [We've All Been There... #trading](https://youtube.com/watch?v=Qj5diAo8nYY)

## Summary

The video discusses a common trading mistake: entering a position at the same level where one would place a stop loss. It explains why this approach is flawed and offers a better strategy based on identifying invalidation levels and working backwards to find precise entries.

### Key Points

- **The Common Mistake** [00:03] — Traders often enter at the point where they would place a stop loss, leading to frequent stop-outs and frustration.
- **The Danger of Misunderstanding** [00:15] — Entering at the stop level is dangerous because the stop should be where the trade is wrong, so entering there means the trade may already be invalid.
- **The Correct Approach** [00:28] — First identify where you are wrong (the invalidation level), then work backwards to find a disciplined entry as close to that level as possible while the setup remains valid.
- **Example of a Better Entry** [00:42] — Enter on higher lows within an uptrend instead of chasing new highs, which provides clear risk and better reward-to-risk ratio.
- **Build Strategy Around Smart Entries** [00:57] — Do not build a strategy around avoiding stop-outs; instead, focus on smart entries, proper structure, and knowing exactly where you are wrong.

### Conclusion

The key takeaway is to prioritize precise entries based on structural invalidation levels rather than trying to avoid stop-outs, which leads to more consistent trading.

## Transcript

to buy it at where you're going to put your stop loss. And then just watch how many times the market goes to your order. I get it. And especially in the beginning as a trader, getting whipped out of positions is frustrating. You
cents, and then it rips in your direction. We've all been there. But advice like just enter where you should be getting stopped out can be dangerous if misunderstood. Because your stop should be placed where you are wrong in
the trade. It should be the level where the setup breaks, where the structure changes, where the trade no longer makes sense. So if you're entering exactly where you should be stopping out, in theory, you're entering when the trade
may no longer even be valid. That's backwards. Now, the better approach is first to identify where you're wrong. Then, work backwards and look for a disciplined, precise entry as close to that level as possible while the setup
still remains intact. Like entering on a higher lows within an uptrend instead of chasing new highs. Why? Because that gives you clear risk. It gives you better reward relative to risk, and it keeps you entering while the trade still
makes sense. Don't build your strategy around avoiding stop outs, all right? Build it around smart entries, proper structure, and knowing exactly where structure, and knowing exactly where you're wrong.