What make you to decide to close your position?

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Are you simply scared to the market movement as it goes ups and down? Can you give me an idea on how to exit, what are the things i need to consider?

 

Set your target. When it is reached close the position. Statistics are saying that 90% of losing positions were gaining at some point. They became losing positions only because the trader was greedy and hoping for more.

Melle:
Are you simply scared to the market movement as it goes ups and down? Can you give me an idea on how to exit, what are the things i need to consider?
 
mladen:
Set your target. When it is reached close the position. Statistics are saying that 90% of losing positions were gaining at some point. They became losing positions only because the trader was greedy and hoping for more.

absolutely correct. sometimes you see a trade setup but your experience tells you not to enter. this experience can be gained through practicing. there is no magic formula in forex trading that can be given to you and make you a profitable trader overnight. it takes time and needs practice.

 

You may identify your profit target as mladen suggest. The profit target should be a logical place or base on your strategy such as support and resistance. You may try to trail your stops as well. Get out of your position when the reason to get into your position is no longer valid.

 

Set specific targets and don't regret if the probable yield higher than what you achieved.

Move your stoploss to breakeven once you are 50% of your target once the market moves

to profit.

Dont move your SL and TP and you will be fine.

PAT

 

You need to have an exit plan before you enter your trade and then set your TP accordingly. Look at what is there and not what you want to earn.

 

Only 2 things can make you close a position. 1) Your rules. If your system (that you've intensively tested) tells you to close your position when it reaches a certain specific point, you should close it. No questions asked. Click - close. 2) Price action. If you're more of a price action trader, depending on what you see happening in the market you could decide that the conditions are not great anymore for your trade and you should close it. It's observation and years of chart time/practice.

 

We cannot predict market movements. The key is to survive another day. So we cannot use static exit for trades. This should be varied from trade to trade. SL to break even is a must after pair started moving in our direction.

 

For me, it's either my stop is hit, or breakeven stop is hit, or trailing stop is hit or maximum trading duration expires.

 

Mostly TP/SL or Trailing stop hit. If not due to various market conditions such as changing directions, upcoming news events, etc.

 

Set of tools from technical analysis: Fibonacci Replacements/Extensions, Moving Average Crossovers.

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