Knowing when to exit:Trade Failed

this is a major problem right now for novice to intermediate traders. Sometimes a trade setup might occur but for some reason or another the trade is not going the way it should. Do You exit or hold boldy?

it depends on your exit strategy

I would say "It depends!!"

If you are in the direction of a major trend and it's not going to break your margin, then I would hold onto it until it becomes positive!! Keep in mind that some pairs have been in extreme trend for years; both EU & GJ have been in a bullish run since 2000. I have recaptured many pips now by turning a bad scalp (long) into a longer-term trade, let it run a day or two, and closing out profitable.

And if it draws down to an unacceptable level, anti-hedge or hedge!! You pretty well know it will come back...

D.

I say HOLD it. If you have a sound strategy then that strategy will have a stop or a pre-determined level at which one exits the trade in the event of the trade moving out of your favor at which the loss does not impare your trading capital to an unreasonable point and will not affect you emotionally to the point you deviate from your strategy. IF however you do not have a predetermined exit point then I say exit as soon as you are aware the original trade setup is no longer in your favor.

JMO

i think what was meant was a strong price action against your trade. say you are up 150 pips in a trade then a strong price actio nate 50 pips out of it.

I would exit. Str8 up.

My sigs never fail unless news is coming in the next hour against my position.. I expect this news and can usually follow the money.. this results in getting out of bad trades at +10 pips or BE.. I trade 5m.

I think a strategy must include certain level of risk, if don't, the normal volatility of the market would be making you losing deals all the time.

So, if the drawdown is among the levels of risk you have stated before the operation it's ok, but if don't... leave.

depends on trend and pair / what is your exit strat telling you? if it was a spike 50 against you over like 15 minutes.. have to ask what was driving it(news).. 50 against you over an hour, your exit a strat should of prob caught it around 30 against or so.

I would exit and hopefully take some profit, and maybe re enter later if the suituation changed into my favour or came back to what looked like a good trade setup.

In general the long-term system I am trading captures quite a bit more than 150 pips on a single trade. I have been up to 400, down to 150 in a day or so and still managed to close out over 600 pips a week or so later on a valid exit signal.... all a part of normal market movement. So i guess it really does depend on how you are trading...

Now if I was short in a bull market, (or either in a sideways) that would be another matter!!

D.

Going into a trade, I make sure that it is completely boxed in everything except maybe time. About the only thing I have found it profitable to let it violate is a take profit point - and then only if it crosses through that level without hesitation. I don't want to spend time watching the trade (any more than I have too); that time is better spent setting up other opportunities, or just having fun doing something else altogether.