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Apr 3
5.8 To Exit Or Not To Exit

 

The decision to retire from a profitable trade is possibly the most hard action one can take in forex trading or currency market. As you observe that your equity growing, the normal response is to do nothing. But, once you realize that your equity is eroding after gains have been made, you begin to zip back and forward as to either you should exit forex trading and take profits or you hold on for even more before the fall ends.
In forex trading many methods have been given which normally needs a little sacrifice on the part of your forex trading profits. For instance, there is the technique of shifting ones stop loss under every dip in equity once the forex trading retracement (price movement in opposite direction) contrary to your position seem to have ended and your equity is once again increasing, The inadequacy to this technique is that you will regularly leave on the table the variance between the final top and just below the you had positioned at your final stop loss order. Most of the times this can be a substantial amount of paper profit.
Other techniques would use some kind of standard indicator, for example, a moving average indicator. The objective here is to place your stop loss just ahead of the moving average indicator as it goes on to follow the ebb and flow of the forex trading or currency market. At any instant the forex trading or currency market dips lower than this moving average, you will be stopped out. Obviously, there will be often times the forex trading or currency market will dip lower than the moving average line long prior to the move has really overused, again refraining you the chances to seize the bulk of move. To keep away this, some may calm down the moving average by using the larger sample value. But in this case it forces you to have your stop loss considerably far from real price action that by the end of the trade will probably have you in the trade longer, but not with any further profit.
I call the STOP loss methodology my favorite stop loss technique. This is a technique quite similar to the forex trading trend lines to stay in a trade when momentum remains fairly steady or rising. The theory here is that when momentum begins to pallid, the forex trading or currency market will normally be topping and will go lower, or it will begin to established prior to beginning up again. If it lowers, we are stopped out. If it establishes, the trade goes on. Something that is common among all these techniques is that we let the forex trading or currency market to make a decision to when we should exit, forex trading and it normally is below top by some degree. The most suitable for any trader is to get as close to the top as it can before exiting. Profit is profit so any trader would be glad if forex trading profits are more than tow times the risk. But if you have the ability to get better your exit plan so as to get better your profit to risk ratio, would you do it? If yes, than continue reading.
As once written by Gann, “After you start actual trading, when you make a trade, don?t close it or take profits until you have a definite indication according to the rules that it is time to sell out or buy in or to move up the stop loss order and wait until it is caught. The way to make a success is to follow the trend always and not get out or close a trade until the forex trading trend changes.”
Several important points are made in his statement. Number one is that you should never exit forex trading “unit you have definite indication, number two is that never close out until the trend changes”.
The rules that of WD Gann’s and yours is not so different. His was about TIME and PRICE, as is mine. If its not TIME yet for a top, why you allow your trade to get stopped before time?
Timing is art as well as science Some use canned indicators to time the forex trading or currency markets, whereas others decide the forex trading or currency market?s cycle pattern. Whatever is in your use, are you also utilizing it to choose when to move your stop loss up? or you are simply utilizing one of the formerly described methods that have nothing to do with forex trading trend?
The merits of knowing the good forex trading timing model is that once you have firmly established the precision of the forex trading model, you can depend on it to inform you to begin getting ready to exit. The use of the timing model have to be efficient enough to caution you that a forex trading trend change is nearby. Clearly, if the forex trading trend is about to change soon, you should be moving your stop loss up firm and strong than just behind a former dip or moving average line. The time is near for that value zone to go beyond when price decides to adjust forex trading trend. It may be a good initiative to begin planning on shifting your stop under the bottom of the last tow days or something like that, in case higher, than the last dip or moving average price. Begin surround yourself out of the trade by locking in a bit more of the forex trading profits prior to stopped out.
If you desire your forex trading to be efficient, your timing replica have to be pretty precise. Basic forex trading systems do not simply offer so much precision. With the objective of several systems to win around 35% of the forex trades taken, they clearly depend on other variables to be forex trading profitable in the long run, while the process of depletion can be pretty large in between.
Various methods are used by WD Gann to time his trades. He explains various fixed lengths as well as certain number of days. He also describes ratios of former moves to be expect for the coming moves. When a cycle is due to top , or a large yearly date is due, many times the forex trading trend will adjust. If you analyze this well, it can be the indication you need to move your stop loss out from the normal dip to dip or moving average way to a closer to the top by whatsoever percentage you feel suitable.
So what does all this means ? if you are ready to take benefit from maximum number of good forex trading, reflect on your forex trading learning cycles. Don’t be contented with what the currency market will give you. The forex trading or currency market will provide you nothing unless you act and take it. Don’t you believe that forex trading or currency market is an object that sits back and equally divides as it sees fit. Each trader have to be prepared by sharpening its tools and “take” a cut out of the forex trading or currency market according to his knowledge, experience, and abilities. Enhance your capabilities and search to learn as much as you can. When a forex trader wants my advice for a line of action my suggestion is always dynamic cycles. It may not be so simple to learn, and you must always avoid the critics who thing they are trying to save your forex trading time but in fact they are wasting your time. Also take a look at view that are unexplored. Always keep in mind. The most suitable time to exit a trade when the forex trading is ending. If you can enhance your capabilities to assess what forex trading trend is when will it end, you will most probably increase your share of what you used to think ?the forex trading or currency market is giving you.

The decision to retire from a profitable trade is possibly the most hard action one can take in forex trading or currency market. As you observe that your equity growing, the normal response is to do nothing. But, once you realize that your equity is eroding after gains have been made, you begin to zip back and forward as to either you should exit forex trading and take profits or you hold on for even more before the fall ends.

In forex trading many methods have been given which normally needs a little sacrifice on the part of your forex trading profits. For instance, there is the technique of shifting ones stop loss under every dip in equity once the forex trading retracement (price movement in opposite direction) contrary to your position seem to have ended and your equity is once again increasing, The inadequacy to this technique is that you will regularly leave on the table the variance between the final top and just below the you had positioned at your final stop loss order. Most of the times this can be a substantial amount of paper profit.

Other techniques would use some kind of standard indicator, for example, a moving average indicator. The objective here is to place your stop loss just ahead of the moving average indicator as it goes on to follow the ebb and flow of the forex trading or currency market. At any instant the forex trading or currency market dips lower than this moving average, you will be stopped out. Obviously, there will be often times the forex trading or currency market will dip lower than the moving average line long prior to the move has really overused, again refraining you the chances to seize the bulk of move. To keep away this, some may calm down the moving average by using the larger sample value. But in this case it forces you to have your stop loss considerably far from real price action that by the end of the trade will probably have you in the trade longer, but not with any further profit.

I call the STOP loss methodology my favorite stop loss technique. This is a technique quite similar to the forex trading trend lines to stay in a trade when momentum remains fairly steady or rising. The theory here is that when momentum begins to pallid, the forex trading or currency market will normally be topping and will go lower, or it will begin to established prior to beginning up again. If it lowers, we are stopped out. If it establishes, the trade goes on. Something that is common among all these techniques is that we let the forex trading or currency market to make a decision to when we should exit, forex trading and it normally is below top by some degree. The most suitable for any trader is to get as close to the top as it can before exiting. Profit is profit so any trader would be glad if forex trading profits are more than tow times the risk. But if you have the ability to get better your exit plan so as to get better your profit to risk ratio, would you do it? If yes, than continue reading.

As once written by Gann, “After you start actual trading, when you make a trade, don?t close it or take profits until you have a definite indication according to the rules that it is time to sell out or buy in or to move up the stop loss order and wait until it is caught. The way to make a success is to follow the trend always and not get out or close a trade until the forex trading trend changes.”

Several important points are made in his statement. Number one is that you should never exit forex trading “unit you have definite indication, number two is that never close out until the trend changes”.

The rules that of WD Gann’s and yours is not so different. His was about TIME and PRICE, as is mine. If its not TIME yet for a top, why you allow your trade to get stopped before time?

Timing is art as well as science Some use canned indicators to time the forex trading or currency markets, whereas others decide the forex trading or currency market?s cycle pattern. Whatever is in your use, are you also utilizing it to choose when to move your stop loss up? or you are simply utilizing one of the formerly described methods that have nothing to do with forex trading trend?

The merits of knowing the good forex trading timing model is that once you have firmly established the precision of the forex trading model, you can depend on it to inform you to begin getting ready to exit. The use of the timing model have to be efficient enough to caution you that a forex trading trend change is nearby. Clearly, if the forex trading trend is about to change soon, you should be moving your stop loss up firm and strong than just behind a former dip or moving average line. The time is near for that value zone to go beyond when price decides to adjust forex trading trend. It may be a good initiative to begin planning on shifting your stop under the bottom of the last tow days or something like that, in case higher, than the last dip or moving average price. Begin surround yourself out of the trade by locking in a bit more of the forex trading profits prior to stopped out.

If you desire your forex trading to be efficient, your timing replica have to be pretty precise. Basic forex trading systems do not simply offer so much precision. With the objective of several systems to win around 35% of the forex trades taken, they clearly depend on other variables to be forex trading profitable in the long run, while the process of depletion can be pretty large in between.

Various methods are used by WD Gann to time his trades. He explains various fixed lengths as well as certain number of days. He also describes ratios of former moves to be expect for the coming moves. When a cycle is due to top , or a large yearly date is due, many times the forex trading trend will adjust. If you analyze this well, it can be the indication you need to move your stop loss out from the normal dip to dip or moving average way to a closer to the top by whatsoever percentage you feel suitable.

So what does all this means ? if you are ready to take benefit from maximum number of good forex trading, reflect on your forex trading learning cycles. Don’t be contented with what the currency market will give you. The forex trading or currency market will provide you nothing unless you act and take it. Don’t you believe that forex trading or currency market is an object that sits back and equally divides as it sees fit. Each trader have to be prepared by sharpening its tools and “take” a cut out of the forex trading or currency market according to his knowledge, experience, and abilities. Enhance your capabilities and search to learn as much as you can. When a forex trader wants my advice for a line of action my suggestion is always dynamic cycles. It may not be so simple to learn, and you must always avoid the critics who thing they are trying to save your forex trading time but in fact they are wasting your time. Also take a look at view that are unexplored. Always keep in mind. The most suitable time to exit a trade when the forex trading is ending. If you can enhance your capabilities to assess what forex trading trend is when will it end, you will most probably increase your share of what you used to think ?the forex trading or currency market is giving you.

 


 

Intraday Trading

 

5.1 Breakout Trading

5.2 Short Term Vs Long Term Trading

5.3 Putting Intraday Trading Into Prospective

5.4 How To Use Cot Data

5.5 Random Dates Vs Cycle Dates

5.6 Markets Runs

5.7 Focus Our Profits

5.8 To Exit Or Not To Exit

 


Forex Education

 

The Basics of Currency Forex Trading

Technical Analysis

Technical Indicators

Fundamental Analysis

Intraday Trading

Emotional & Behavioral Part

Risk & Money Management

Trading Guide