Successfully Exiting a Trade

I personally beleive that in many cases exiting a trade is even more important than entering it. In my opinion entering a trade is mostly based on the market analysis but exiting a trade is both affected by market analysis and money management techniques.

For example you may enter a trade wrongly but with a quick change in the price level exit it with even a couple of pips profit. On the other hand you may exit a trade too early and lose potential profit or even lose a winning trade.

I use Fib retracement and some support/resistance lines to setup my T/P or S/L exit levels. I also move the S/L line in the direction of the trade as soon as the price moves in my favour significantly. Sometimes I use trailing stops but I didn't find them very useful in general.

What is your approach? What do you suggest to successfully exit trades?

Ah yes, exits are the hardest part imo too.

After many technical tribulations I am now exiting the trade based almost on money management only. Thus the first thing I am trying is move to BE asap. Then slowly unloading parts of the position and moving the stop behind the price, kind of like a trailing stop. But beware that this kind of unloading is best suited for trend-following systems as it alows you to stay in big moves but also protects you by moving to BE asap.

There ARE NO Bad Entries, only Bad Exits.

After you think about that and decide sure there are bad exits, rethink your MM and then your psych.

Then, after you think about that, realize that Bad Exits do exist for a reason.
Capital Preservation. [did anyone catch the reBUS?]

If I am willing to forgo placing any other Trades, then that changes my MM on the Open Trade. If I see another opportuity [opportunityisnowhere] in another vehicle, that changes everything.

Catch 22 for the Old Fogies.

Hi .


Well entries and exits depend generally on the trader's strategy and discipline .

Some people manage their trade with a trailing strongly believe in their analysis and never move their trades or get affect by any out-market interference .

It looked quite good to buy Eur/USD this Monday and close this position on the 1.2860 test with the USD weakness clearly revealed by recent market data .it was obvious that it 'll test this resistance before ECB rate decision on Thursday . But the situation in CUBA made the investors aware of any entries .So it 's looking like a dead market these late hours . It's clear in the trade volume .
So what can you do in this case . Simply and wisely ,get out of the market . or stay holding your heart .

Forex market is a very difficult market . because , you have to deal with different mentalities and differnent retailers reactions foe anything happening .
What does CASTRO have with damn market .
Why traders are so afraid .. !!

I reduce my risk by scaling out using Fib levels.

Could you elaborate on that?

Thanks

Hi every one. I am using VT Trader platform and to Exit all the trades use "Level Stop - Reverse System". After the indicator produces the signal I alow it to run next 20 pips to see if it's not false, then close.

Same here! I use fibs too. Maybe I'm just a Vegas Tunnel fan!