when to exit a trade

[Daisy]

As a newbie, you would have that question. When to exit your trade when you scalp or when you do long term? Obviously, you're hunting for profit so when you feel like you can take an exit and make money then do so and if you stay longer you might lose more money so exit while you can or take profit. A bullish trend will go only so high and it doesn't go to infinity so as you look at past moving average, you should have a sense of where to take an exit so do it when the trend is close to there. A trend will turn downward when it peaks so exit before that point or exit right away if it happens to turn downward since you will lose more and it will not turn upward for another hour or so. You will lose if you stay in. In long term trading, you can let it bounce until it hits the highest point and then you can exit so there are more freedom in long term trade but you always want to exit at the best profit point. What else can you add to this?

 

[gkintl]

A trader should exit a trade when there is an impending reversal. Most of the reversals can be identified through proper understanding of indicators. Under such a scenario, a trader should exit the trade. In fact, a properly structured trading strategy should define exit terms as well. It is always better not to hold on to a trade, as a beginner, when price movement is not as expected.

 

[Daisy]

A trader should exit a trade when there is an impending reversal. Most of the reversals can be identified through proper understanding of indicators. Under such a scenario, a trader should exit the trade. In fact, a properly structured trading strategy should define exit terms as well. It is always better not to hold on to a trade, as a beginner, when price movement is not as expected.

We should also look at indicator as well for those changes but prices to do not go to infinity and they stop at some point so we must also watch out for that or peaks points and we should decide to exit and take profit. It can go higher but then it will also turn downward right afterward so we should react quickly and don't stay in it too long as it will turn against us but experiences will allow you to exit when you feel like its time to do so.

 

[Pettyeve]

There are many times when the trader should exit a trade and lock his profit. When he or she has gotten his or her targeted profit for the trade, it will be good to exit the trade t that time instead of over trading. If the trader has the knowledge of how to know a false breakout, he or she should exit when there is such a market condition because it will usually result into losses.

 

[kasual]

Traders gain profit by riding the momentum. Both short and the long one. And when momentum start to exhausted, and create retrace movement, that is the time to traders to close the positions. However, if traders have specific target, not necessary to wait the momentum gone to close the positions. Once target being hit, traders can close the positions right away.

 

[willy]

because i am trading with my digital strategy depending on pending orders i put my take profits and my stop loss therefore i know before when the trade will close automatically with profits or with the loss

 

[kasual]

When traders following momentum market, usually exit when the momentum start to exhausted. The sign is candlestick body become thin and explain that there are equal pressure between buy and sell. Or when traders have specific target in trading, they’ll exit trade when the target fulfilled.

 

[rexway]

That is true and its one of the reason why I have to say a good trader need to trade with stoploss and take profit ,with this even if a reversal occure you are safe and you are good to go with proper skills in here

 

[Decub]

because i am trading with my digital strategy depending on pending orders i put my take profits and my stop loss therefore i know before when the trade will close automatically with profits or with the loss

Pending orders are quite good as they help you take care of your orders even before you arrive at that point but personally, I am not too good with it because of possible slippage. When I feel I've started dipping, I will close my positions. It gives me that rest and wouldn't have need to press further again. Some other market conditions can force me to close for the day.

 

[riddick09]

We should better use of putting take profit and stop loss if we can't wait or manually close our positions. Since, we can't wait for long time as we may have reached margin call. Thus, its up to us if we will use this method for our trades to be closed.

 

[budado]

I prefer to do analysis before I trade. So the exit range regardless if its TP or SL must be computed before I even open a position. Because how will you know your SL and TP if you don't know your entry point right?

 

[sindarin]

The best time to get out of the market plus the floating position is when you have received already big enough for your expectation today in other words the profit that you generate. You can use this method by using a take profit.

 

[Dmitriy Ushakov]

I think we should always use the dollar stop for all trades so that to have protection if everything goes down the chute.

 

[sininfinity]

I think there is no answer to that question. In my opinion when one has got enough from a trade then it is the time to exit. Also one should remember that their targets won't be filled all the time so they should stay prepared for that as well.

 

[starlite]

yes In forex mostly traders become greedy when they get enough money they do not stop . They think always profit will come to them. It s safe strategy to close trades when you get your target or a good amount in your hand as a profit . You can do profitable trading next time . Do not trade more in a single day.

 

[Glenn Phillips]

Very important question! But I have a very effective policy and that is support/resistant levels! Yes, I use Support and Resistant levels both for my SL as well as my TP levels! Even for my account security I set my SL above 3-5 pips more and my TP 5-8 pips below! But I don’t use any specific target on my TP levels!

 

[Faal]

I set my entry & exit points according to the position of support & resistant levels! In addition, I am not interested in intraday support and resistant levels; I set important levels of the market according to the daily chart and above!

 

[William]

You should exit the deal when you've achieved your goal or if the losses don't follow your money management.

 

[Lee Mark]

Usually, I set my TP for 50 pips because of the trade setups of my personal trading strategy! On the other hand, I use my SL for 25 pips! Thus I do my live trading.

 

[Max Trade]

In Fx trading place, Excitement and greed after my profits and lack of emotions control after my losses. Weeks ago I made this kind of mistake, entered a revenge order in order to recover some losses without any proper analysis, and at the end, I got MC on my account..