Best exit strategy
- Thread starter jagankris
- Start date
Agree 100%
Not much discussions on exits . . . most of the focus is only on trade entry
2 aspects, 1 making best of the trade and 2nd is the temperament of the trader . . .
Form my experience in swing trading holding the position till the reverse signal is generated gives the best possible gains overall.
The temperament issues in doing this is, giving back the gains on the last price swing when the price reverses and takes out the stops.
One has to learn to live with it, so most of us go for a compromise of booking part gains on a successful trade.
My experience is that scaling-out always reduces profit on the trading system but for me it also makes the system trade-able.
I consider all scale-ins as separate trades to be managed sepetarely.
Like to hear more views from other traders
Thanks
Not much discussions on exits . . . most of the focus is only on trade entry
2 aspects, 1 making best of the trade and 2nd is the temperament of the trader . . .
Form my experience in swing trading holding the position till the reverse signal is generated gives the best possible gains overall.
The temperament issues in doing this is, giving back the gains on the last price swing when the price reverses and takes out the stops.
One has to learn to live with it, so most of us go for a compromise of booking part gains on a successful trade.
My experience is that scaling-out always reduces profit on the trading system but for me it also makes the system trade-able.
I consider all scale-ins as separate trades to be managed sepetarely.
Like to hear more views from other traders
Thanks
There is no best exit strategy.
It depends on your entry position and the way price is behaving and also your risk appetite and time frame of trading.
In a trending stock, we can scale in re-enter and exit at swing lows,etc.
In a sideways stock we need to exit at support/resistance.
Taking partial profits at regular intervals is also a good exit strategy.
The best strategy I use that if ,the reason for which we enter a trade is not valid ,then we should exit.
Eg. 1)If we enter a trending stock at a breakout/pullback and there is a trend reversal , we should exit.
2) If we enter on a 20-30 EMA bullish crossover, we can exit on a 20-30 bearish crossover.
For an Intraday , sometimes the Timebased exit is very useful.i.e Exit at EOD.
Some useful links
http://www.investopedia.com/articles/trading/04/092904.asp
http://www.tradingmarkets.com/recen...helpful_advice_on_exit_strategies-671907.html
http://www.morpheustrading.com/blog/trail-stops-swing-trades/
Any fool can get into a market, but it’s the real pros that know when to get out
It depends on your entry position and the way price is behaving and also your risk appetite and time frame of trading.
In a trending stock, we can scale in re-enter and exit at swing lows,etc.
In a sideways stock we need to exit at support/resistance.
Taking partial profits at regular intervals is also a good exit strategy.
The best strategy I use that if ,the reason for which we enter a trade is not valid ,then we should exit.
Eg. 1)If we enter a trending stock at a breakout/pullback and there is a trend reversal , we should exit.
2) If we enter on a 20-30 EMA bullish crossover, we can exit on a 20-30 bearish crossover.
For an Intraday , sometimes the Timebased exit is very useful.i.e Exit at EOD.
Some useful links
http://www.investopedia.com/articles/trading/04/092904.asp
http://www.tradingmarkets.com/recen...helpful_advice_on_exit_strategies-671907.html
http://www.morpheustrading.com/blog/trail-stops-swing-trades/
Any fool can get into a market, but it’s the real pros that know when to get out
Last edited:
Similar threads
-
-
Which is best, Invoice Discounting Investment or Trading?
- Started by nehapatil006
- Replies: 7
-
-
-
What are best Intraday Indicators and Oscillators to show exact entry and exit price
- Started by praveen5344
- Replies: 6