A Guide To Exiting Trades Successfully
['Nial Fuller']
Learn To Trade The Market
Here’s the “behind the scenes” reason why so many traders find exiting trades difficult or otherwise mismanage their trade exits; they are risking too much money per trade. If you manually close a trade out for a loss before it hits your pre-determined 1R dollar loss, you are also voluntarily eliminating any chance of the trade moving in your favor and this obviously affects the potential long-term profitability of your trading strategy. If the market gets really close to your profit target you should monitor the price action, if you are at a 1:1.5 or 1:1.8 risk reward and the market appears to be turning around (based on the price action)…there’s nothing wrong with closing the trade out and taking the profit off the table.