During trading discussions traders often talk of which currency to use but rarely they speak about when to exit.
Exit strategies are very important in forex trading. Many people do not realize the fact that exit strategy is as important as any other part of a trading system.
Part #1:
- exit determines more p&l more than entry
- there is no perfect exit strategy except with hindsight
Part #2:
- fix rules do not work
- you will never perfect your exit strategy
- the real damage is psychological, not financial
- your exit strategy must be designed to match your trading psychology
- a good defence is better than a good offense
Part #3:
- what are the goals to exit
- how does chosen market move
- approach for exit
- initial stop loss management
- ongoing exit management
- multiple pairs
- news and economic releases
