Many people tend to make a profit at the beginning but due to some unforeseen reasons lose money at the end. They fail to secure profit since it requires a perfect escape plan from the trades. If you look at the professionals and observe their techniques, you will notice that they emphasize more on the exit then the trade execution process. Can you think of the possible reasons why this particular method is followed? The answer is very simple because they know their strategy is going to work but in the worst-case scenario, they can save their investment. This article is going to provide you a complete guide for finding the exit. This instruction is applicable for both investors including long term and short term.
Exit as soon as the target has been achieved
The first thing to keep in mind is to exit ASAP whenever the goal has been fulfilled. Do not be greedy while managing the open trades. Never let the emotions take over the decisions which have been derived from analysis and calculations. This sector is evolving and it can change at any time. Target small amounts at the beginning and there is no reason to pay attention to your greed. You might be thinking of to stick to profitable trades to maximize the profit. But this is how 90% of the investors fail in currency trading even after having the perfect strategy. As long as an investor keeps the trade open, the capital is exposed to risk. The smart traders always set realistic goals so that they don’t have to lose money from profitable orders.
Use the auto chartist
If you manage to learn the candlestick pattern trading system, you can easily find the perfect exit points for the trades. The naïve traders can also rely on the auto chartist features to make things easier. The important chart patterns will be drawn automatically and you can find the exit and entry point. Before you start using the auto chartist, you need to use it in the demo account. Unless you learn to use a new tool in the demo environment, it will be tough to make the right decision. The majority of traders fail to secure profit since they don’t understand the importance of hard practice. You have to develop your skills at the initial stage and only then you will be able to save your money.
Look out for the external events
In a global market, the ideal currency correlation can be easily perceived. If the idea is not cleared, the basic understanding is not completed yet. Things like economic shock or major events can impact a certain currency pair and may shift from the usual pattern. If you noticed the industry is going through an economic crisis due to the impeachment of President Trump that happened recently, exit with the profit without giving much thought. This is just an example of the Global phenomena that can affect the market. If any situation seems out of the context, taking a break will be a wise decision.
Actions for short-term traders
For those people who are interested in using a quick technique for generating money without waiting, act quickly like Usain Bolt. Try to use the 5-minute chart and keep an eye on the trends. Whenever there is a positive digit showing on the account, close with the remaining profit. This is not applicable for the long term traders as their trades remain open for weeks and even months.
Regardless of your trading strategy, you must rely on the long term goals. Try to create a simple routine so that you can change you can find quality trades. Instead of working hard, you have to think like a pro-investor. Take smart steps and only then you will be able to execute quality trades.
- Trade on Bitmex
- Trade on Binance Jersey
Subscribe to our Newsletter to be a part of our future $1,000 per month contests.