Exit Checklist

I was told, if you're in a winning trade and you're in doubt as to whether you should close it or not, stay in. You should have some type of exit ritual to prevent you from rash closings and letting losers go to far.



Exit Checklist


1. Why do I want to exit this trade right now?

2. Has the trade reached the minimum target of 1:2 Risk to Reward?

3. If the trade is losing, am I about to exit where I planned to exit? If not, why not?

4. Have I moved my stop away from the initial stop? If yes, close out now if initial stop has been reached.

5. Can I put off closing this winning trade any longer?

You know...I had this problem with exits few years ago...and I will tel you what helped me. It was scaling out of positions! That even helped me to follow the rules easily. But offcourse it is got to be in line with the big picture of your system/plan/strategy whatever.

wait for your suggestion, hope it would help...

What does your trading plan say !!

If your system has a positive expectancy, the odd loser or in fact a string of losers is no big deal, just keep taking every trade and let your positive expectancy play out http://www.forexfactory.com/images/icons/icon14.gif