The two most important things in any trade are the entry and exit. Do them right and you have a winning trade. Do them wrong and you end up with a losing trade. Many traders know how to make an entry. They use indicators or some trading signals to know when to enter a trade.
But many don’t have a clue as to how best to exit a trade so as to maximize your profits. Make a hasty exit and you leave many pips on the table. And make a late exit and you will end up turning a winning trade into losing one. Even if you made a wrong entry but you know how to exit, you can save your trade. Sometimes, the entry signal tells you to enter the trade. You make the entry but soon the market all of sudden turns against you. Now, you have a potential losing trade on your hands.
Cut your losses and run your profits, this is what you will often hear from most of the experienced traders. But can you turn a losing trade into a winning trade or at least exit without a loss. Let’s take an example.
Trend trading is highly profitable. But the problem is knowing when to enter a trend and when to exit it. Suppose, somehow, you have been able to figure out about the start of a trend. You enter it. You place a stop loss. Experienced traders change their stop loss position everyday keeping in view the state of the trend. You cannot use the same stop so you will need to change your stop each day as the trend moves.
Trends don’t move in straight lines. They have the habit of zig zagging. What this means is that there are minor trends in the main trend. Putting a tight stop loss risk being tripped soon and taking you out of trend very early. You don’t want that to happen. After a few days, trailing stop maybe the best option for you as you have made some pips in the market and you don’t want to lose them if the trend reverses all of a sudden. This way you make sure that if the trend reverses itself you are not going to lose your initial gain.
Whatever, there are many ways to exit a trade, one way of exiting a trade is through using a trailing stop. Another way of exiting a trade is through a take profit order. Dean Gallagher is an experienced forex trader who has been trading the currency market for a long time.
Recently, he released his forex training complimentary videos and manuscript in which he shows how to exit a trade. Rather he calls his methods, “The Five Exit Heroes.” These are the five best methods that you can use o exit any trade with hundreds of pips in your pocket.
Now what these forex training videos show is to use these five different exit methods in different market conditions. You can also download the manuscript that will show how you can use anyone of these five different exit methods to suit your trading system and your trading style.
The FREE Manuscript will explain the five exit methods in step by step detail. Dean Gallagher will explain everything in the manuscript to walk you through the five methods and how to decide which one to use in a given market condition.
By: Ahmad A Hassam