Exit Strategies
It is often said that how one exits the market is much more important than how one enters the market. I thought I would re-post this 4 video series from Lanc Beggs on exit strategies.
Cheers
Tek
Cheers
Tek
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This is great, Thanks Tek
Posted 10-18-2009 at 05:06 PM by Ruben..
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Great stuff. Thanks for posting. Lance Beggs is truly one of the best.
Take care
JBNPosted 10-18-2009 at 09:34 PM by jackbenimble
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on my to do list is the next update for informedtrades university -- when that comes around i think we should add a bunch of posts you've made like this one that are very educational.Posted 10-19-2009 at 06:47 AM by Simit Patel
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Hi,
For ranging markets, i would have a predetermined limit stop order. Because if i'm right, i'm right and price should not exit my limit by much. My stop can be very tight because in ranges, when i'm wrong, i know very quickly.
In trending markets, my exit would be a trailing stop order. I talked about how trends can last longer and longer because loosers add fuel to the fire and price takes the path of least resistance. So, a trailing stop would be the best barometer for an exit profit. The stop should trail behind by a little more then the average daily range to decrese the chances of getting whipsawed. this method is logical to me because when price goes against you in a profitable trade for more then the average daily range, there might be signs that the trend might pause or stall. then out i go.
the only hard part is when to pace the trailing stop. If i place the stop to breakeven too soon, i might have a high chance that i get stopped out although i was still right for the move. this takes experience and skill. Dicipline is very important.
ForexerPosted 10-19-2009 at 07:43 AM by forexer
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