"Exits are where the money is." by Paul M King, Futures magazine. Great article. I have always wondered. The most common thing in every thread is the importance of getting out of the trade. If the exit is the most important, why is it the least talked about? It seems like we spend most of the time trying to find the perfect entry or "HOLY GRAIL" instead of the perfect exit. Maybe I am wrong but from what i understand the entry is not as important as the exit. I know exits have many variables to be specific but I think more time should be devoted to this topic.
What I have been testing for my exit is..... ex. I buy 2 lots at 1.3000 with stop of 20 pips. If price moves in my direction 20 pips sell 1 lot and for second lot i move stop to +1 if price continues to 40 pips i move stop to 40 pips if price reverses i exit with 21 pips. i never set a profit target i just move stop so i can try letting profits run. Still in testing phase though. My exit strategy is generic, but am sure that it can be applied to different entries. There are things we dont know (entry) but there are things we do know (ex. cable seems to swing around 20-30 pip range) to help build a perfect (at least better) exit. I have seen some people using an ATR for exits.
Even though our entries might be different if we post are exits some of us could improve our exits by incorporating what other people use or maybe some exits that work for some might also work for others.
Just my 2 pips. A pip for yours.
Thanks to everyone newbie to professional for the things i have learned and continue to learn here at FF.
Noe
"An investment in knowledge always pays the best interest." Benjamin Franklin
What I have been testing for my exit is..... ex. I buy 2 lots at 1.3000 with stop of 20 pips. If price moves in my direction 20 pips sell 1 lot and for second lot i move stop to +1 if price continues to 40 pips i move stop to 40 pips if price reverses i exit with 21 pips. i never set a profit target i just move stop so i can try letting profits run. Still in testing phase though. My exit strategy is generic, but am sure that it can be applied to different entries. There are things we dont know (entry) but there are things we do know (ex. cable seems to swing around 20-30 pip range) to help build a perfect (at least better) exit. I have seen some people using an ATR for exits.
Even though our entries might be different if we post are exits some of us could improve our exits by incorporating what other people use or maybe some exits that work for some might also work for others.
Just my 2 pips. A pip for yours.
Thanks to everyone newbie to professional for the things i have learned and continue to learn here at FF.
Noe
"An investment in knowledge always pays the best interest." Benjamin Franklin