Whenever i attended any forex seminar, I can vouch that almost everyone that I’ve met asked the trainer the same questions. “When is the good time to enter a trade?, what are the indicators to show a good entry signal?, What is your strategy you are using to enter that awesome trade?” This happens all the time, and before the trainer could even share more on other trade essentials, people just move away and start discussing all those great entry ideas. In the end the trainer just thought that maybe these people aren’t interested in other stuff other than entries, so he should not share them further. I was increasingly frustrated that how can trading revolves only around the hottest entry techniques or that pin point entry signal that promises juicy profits? Isn’t there much more to trading than just entries? I went to read up on all sorts of trading books, many of which focusing on entries and strategies. Until I start noticing some books mentioning about trade management, risk management, trading psychology and exits. Exits?! I didn’t think of that at all and somehow it made sense to me. Of course for every entry into the market you need to get out and how do I get out I do not know. I know nothing about proper exits nor do I know when to get out. All I know was that i will get out of the market if something feels wrong or that the chart seems to be acting strangely. I exited without any reason at all. Sometimes I do not even attempt to exit, feeling that I’m on a winning momentum when things goes my way or when conditions goes back and I hope to recover back all that I have lost. I had this fear with me all the time whenever I want to exit. To put it simply: 1. I exited at the wrong time mostly 2. I had fear of exiting the market But these 2 problems can be solve if I had 2 things in combination: 1. Trade management planning 2. Automation trading If I developed my own sets of trade exits rules before I enter the market, I will know that I have a set guideline to follow when I am in trouble. If I am able to automate my trade management system, I do not need to fear of not being to execute my exit commands. That way, I can build up my confidence in trading while I attempt to find a suitable forex exit strategy for my own trading strategy. So for retail traders like you and me in order to have profits from our trades, we need to develop our own exit strategies and automate it to work for us. Feel free to use this article on your website or ezine as long as the following information about author/website is included.
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