When to exit a forex trade

In forex trading much is talked about the perfect entry point, the combining of various indicators and fundamental conditions to find the very best opportunity. Much less is talked about the strength of a good exit which is a shame since a good exit is just as important — if not more so.

An entry, for example, can do nothing to stop a wayward trade, whereas the exit has the ability to capture profits at any point or catch a trade before it goes wrong. One of the most logical ways to exit a trade relates to the strategy that caused you to put on the trade in the first place.

Likewise, if you bought on a breakout you should probably sell when the price breaks down. At the very least you should have some criteria laid out in advance for exiting a trade. The trailing stop can be used to guard against losses and help to lock in profits as they occur. It can be used on its own or in conjunction with another exit.

One of the difficulties when using the trailing stop is knowing how far away from the price action to set the stop as too close means you could take profits too early, while too far away and you might not capture any profits at all. Testing the trailing stop using past data is a good way of finding the right distance. Using a price target is a good way to exit a forex trade so long as you pick a level that is realistic.

Technical levels such as pivot points are often great places to set as price targets for a couple of reasons. First of all, they use recent data so they adapt to market volatility. This means that the key pivot levels are all realistic profit targets. Secondly, pivot points are watched by thousands of professional traders. This means they are better at predicting turning points. The Fibonacci and Elliot Wave Cycle are other technical indicators that can sometimes provide good exit points as is the ATR indicator which works better for day traders.

The Fibonacci is a mathematical sequence that manages to anticipate turning points with extraordinary accuracy while the ATR indicator is a good tool in order to gauge price moves. Instead of looking for an arbitrary number of pips as a profit target, halving the ATR for the last 14 days can provide a more realistic expectancy. A strategy for hedging forex trades. Best ways to exit a forex trade myfxequipment.

Best ways to exit a forex trade - James Invest James Invest. Best ways to exit a forex trade pipstrr - Your Forex News Feeds And Tips About Forex Trading. Best ways to exit a forex trade Forex Crunch Forex Kompass Indonesia. The Bus That Spreads Entrepreneurship Around Greece — Greek Reporter Forex Trading Markets Zine.

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Foreign exchange Forex trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher.

Investment objectives, risk appetite and the trader's level of experience should be carefully weighed before entering the Forex market. The high risk that is involved with currency trading must be known to you.

FX Exit Strategies: Keeping Your Profits

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Best ways to exit a forex trade 5. Dec 12, Trailing stop The trailing stop can be used to guard against losses and help to lock in profits as they occur. Price targets Using a price target is a good way to exit a forex trade so long as you pick a level that is realistic.

Technical indicators The Fibonacci and Elliot Wave Cycle are other technical indicators that can sometimes provide good exit points as is the ATR indicator which works better for day traders.

Day Trade Forex System: The ULTIMATE Beginner's Step-by-Step Online Currency Trading Course

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