Enter, monitor, and exit are three vital steps to follow while trading. While most traders focus on how and when they can enter a particular setup, they pay less attention to their exit strategy. Today, we are gonna look into some popular exit strategies that we utilise in our personal trading.
1) Breakeven closure When the price is moving in our direction and is already a few key zones away from the entry zone, we make the trade risk-free by moving the Stop Loss level to the price of entry. If the Stop Loss gets hit, we exit the trade with neither a gain nor a loss.
2) Manual Closure In the process of monitoring, if the price does not play out according to our plan, we tend to make quick decision and exit the trade earlier than planned.
3) Target Profit We set a Take Profit (TP) order that closes the transaction as soon as it gets triggered.
4) Stop Loss We set a Stop Loss (SL) order that closes the transaction as soon as it gets triggered.