Entrys are easy - still stuggling on the exit | Forex Factory

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Entrys are easy - still stuggling on the exit

  • #1
  • First Post: Sep 21, 2010 12:55pm Sep 21, 2010 12:55pm
Its been a while since I posted last, and I've been on my practice account as much as I can. I find it fairly easy to choose long or short.

However I really struggle when it comes to taking the profit, either I take too early and it takes off, or I don't take and it disappears.

Attached are an hourly and a daily chart for the GBP/USD from about an hour ago. I'm short at 1.55534. I'm interested in where you would put your SL and TP. I'll post up with mine in a few posts time
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  • #2
  • Sep 21, 2010 1:37pm Sep 21, 2010 1:37pm
Quoting Gasmeter
Its been a while since I posted last, and I've been on my practice account as much as I can. I find it fairly easy to choose long or short.

However I really struggle when it comes to taking the profit, either I take too early and it takes off, or I don't take and it disappears.

Attached are an hourly and a daily chart for the GBP/USD from about an hour ago. I'm short at 1.55534. I'm interested in where you would put your SL and TP. I'll post up with mine in a few posts time
First off, I wouldnt as a newbie be trading near a volatile news announcement like the FOMC (just released) but as you are on demo and learning I hope this is a good experience for you.

As for your question on stops. I would place my stop just above the previous resistance.

I would place my first take profit just above previous support to ensure it is hit.
  • #3
  • Sep 21, 2010 2:45pm Sep 21, 2010 2:45pm
Well the spike experienced by the news didn't hit my stop loss and I'm still in business, however what you say about news is a good point and reminds me that I should always check the calendar
  • #4
  • Sep 21, 2010 3:01pm Sep 21, 2010 3:01pm
Well if entries are easy and you have patients then use a percentage based exit and let compounding make your money.
  • #5
  • Sep 21, 2010 6:43pm Sep 21, 2010 6:43pm
Quoting Gasmeter
Its been a while since I posted last, and I've been on my practice account as much as I can. I find it fairly easy to choose long or short.

However I really struggle when it comes to taking the profit, either I take too early and it takes off, or I don't take and it disappears.

Attached are an hourly and a daily chart for the GBP/USD from about an hour ago. I'm short at 1.55534. I'm interested in where you would put your SL and TP. I'll post up with mine in a few posts time
This is by far the hardest part of trading (IMO) and you could spend your life time trying to perfect it

Whatever you choose to do, just do it consistantly - if you do random things you will get random results as Im sure you have already experienced

Think about your objective for the trade - are you trying to join a big trend? scalp a quick move? Perhaps different market conditions will call for a different exit strategy

A risk reward ratio is one way but IMO it makes no "market sense", but better than nothing.

Theres many ways - S/R levels - Fibbonacci projections, letting the market decide, (trailing a stop behind the swing lows in a long) (or trailing under the low of a candle maybe)

But whatever you decide to do understand you will NEVER catch 100% of a move 100% of the time and trying to do this will drive you mad.

Just take what your happy with and if it keeps going without you just be happy with the fact that you have traded to your plan and have left with profit.

But yes its definetly the hardest part for almost everyone for the very reasons you mentioned. I will repeat - Choose something and do it CONSISTENTLY. Dont change it every time you leave money on the table you will drive yourself nuts. Been there done that!

But with that said you may have to try many different ways before you find one your happy with. Personally I like to have a strategy depending on the market so if Im with the strong trend will be one I hold for longer and if I am in a range or against the trend Im out for a quick profit regardless.

Dont individualise every single trade - think about the long term effect of 100 trades and how your plan will pan out in the long run.
Time hides Nothing
  • #6
  • Sep 21, 2010 9:00pm Sep 21, 2010 9:00pm
Quoting Gasmeter
Its been a while since I posted last, and I've been on my practice account as much as I can. I find it fairly easy to choose long or short.

However I really struggle when it comes to taking the profit, either I take too early and it takes off, or I don't take and it disappears.

Attached are an hourly and a daily chart for the GBP/USD from about an hour ago. I'm short at 1.55534. I'm interested in where you would put your SL and TP. I'll post up with mine in a few posts time

I've read so many times comments similar to yours that entries are easy, exits are difficult, but at the same time there are some threads where the poster makes statements like "95% of traders are on wrong side of trade", and as such, for some reason these kind of statements are perpetuated as being true.

As for TP, I say don't use it at all, as I believe in analogy I read something to the effect of "why start changing your tires before the race is over?"

IMHO, you should take your profit where the exit signal of your system dictates the trade should be exited. So, this leads to where the stop should be placed, which I agree with CindyXXXX that it's one of the hardest aspects of trading. I say place your stop with a method that let's your trade "breathe" - in other words, it should be a balance where you have the most chance of success of your trade exiting at the designated exit signal without getting stopped out beforehand while at the same time protecting your trade from a substantial loss. Personally, I use a high EMA for a stop, but do some research and find a method which fits criteria I mentioned that you feel best fits your system.
  • #7
  • Sep 22, 2010 1:13am Sep 22, 2010 1:13am
Quoting CindyXXXX
This is by far the hardest part of trading (IMO) and you could spend your life time trying to perfect it

Whatever you choose to do, just do it consistantly - if you do random things you will get random results as Im sure you have already experienced

Think about your objective for the trade - are you trying to join a big trend? scalp a quick move? Perhaps different market conditions will call for a different exit strategy

A risk reward ratio is one way but IMO it makes no "market sense", but better than nothing.

Theres many ways...
Cindy made some excellent points, especially about doing something consistently. I'd also add that you should be recording all your trades (if you're not already), because then if you want to try another system of managing your trades, you have a baseline against which to test. You can then test, and tailor your system to higher ROI, lower drawdown, or whatever your goal is.

But consistency is the key - if you're not being consistent, your results are meaningless.
  • #8
  • Sep 22, 2010 6:33pm Sep 22, 2010 6:33pm
thanks cindy for ur post.... it really helped a lot. what i do is wherever i place my stop loss, i multiply it by two and place my take profit...
  • #9
  • Last Post: Sep 25, 2010 3:18am Sep 25, 2010 3:18am
The best way is to have both Trailing Stop Loss and Trailing Take Profit orders with the conditions for updating the positions.

In this case you can move your levels with the market (independently for both Long and Short positions).
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