Very much has been said about the technology enter the market, but what about the output? Most traders had no plan for withdrawal, regardless of whether their position in the lucrative territory, or immersed in the negative. The truth is that a good exit will save your cost, with low input, and will allow you to stay in the game longer than a good selection of market-based instruments.
When you exit the planning should take into account the good, bad and emergency scenarios. In other words, keep the profit protection strategy to exit winning positions, a strategy for limiting losses to exit the losing position, and in case of unexpected developments. You must have all three strategies for each transaction, because it can happen any scenario, once when you open a position.
Your period of retention of position effect on earnings in the planning of outputs. Always define the purpose of profit, which corresponds to your time in the market. In other words, the most profitable trades on the movements of your entrance to the goal within the time period in which you sell. This will allow you to use an exit strategy in their favor, as based on time and on the basis of price.
Exit strategy based on the time required by a small interpretation. Focus mainly on the time period, retaining the position, rather than on price action. Get out of the transaction as soon as the price reaches the objective of profit at the right time. Out of the deal before the price reaches the goal of profit, if the retention time expires. The principle of strategies based on time is to find the best price reached in the selected time period.
Most traders typically begin with an exit strategy on the basis of price. For example, you enter into a long position, and she begins to move into profitable zone. Market rises at a moderate pace, reaching your goal on your earnings in the period of retention of position. You just get out of the transaction on the target price. This means that you close the position and go, not looking at the current price action.
You have just made a good profit on the perfect market, but how you protect yourself on the real market? Start focusing on trends in the more short-term temporary format. For example, when trading in the afternoon schedule, manage profit and loss account using the 60-minute schedule, whenever possible. For short-term graphical model shows you where to move the stop-order to protect profits, or when fully withdraw from the transaction.
Let's emphasize the normal stage for the long position, which ultimately reaches the goal of profit:
. Price moves in the profitable zone.
. Price reaches first resistance, and unfolding.
. Price finds support and passes through the first resistance.
This action continues until the price reaches a target. In this scenario, trade management requires an effective stop-order as soon as the price moves in the profit zone. This stop-order shall be moved after the first turn, but stay below short-term support. When the price finally rises above the first resistance, move the stop order just below the new level. Continue the process until the position is not to reach the goal of profit.
Profit is good, but many deals are themselves unstable immediately. Exit strategy in this situation is very simple: get out as soon as the price of violating support for a long position or resistance in the short position. This may sound simple, but there are two problems. First, many traders lack the discipline to take losses when they should be taken. Secondly, many traders do not understand how to place a stop-order and post-position.
Take your losses when the market tells you that you are wrong. Each model has a graphical level, strains of which disrupted the entire model. Determine the rate in advance and place your stop-order immediately behind him. Keep in mind that this level changes dynamically with each new bar, so you need to calibrate it often enough. But do not remove the freeze order does not under any circumstances.
You are upset because your stop-order and often work in the good deals? Error lies in your analysis and management of trade, rather than directly to the stop-order. Many traders believe that they can improve their work by placing stop orders where the price should not go. Each marketing tool support or resistance upset over the change of trend. Your analysis should take into account the variability of the primary marketing tool, so that the stop order was placed outside the "market noise".
Finally, you must be prepared for unexpected bad news. Start with training in case of panic and scroll through it many times in his head. Exit strategy is simple: if you can get ahead of the rest of the crowd in front of the door, act immediately. Market after the announcement of the news can save your wealth, if you learn to use it wisely. If you nemozhete flee immediately, closely watch the price action and try to find the best price. The market can do something innovative, as soon as received the bad news, and you may need to take a large loss.
Sudden losses are an integral part of business as the "trade". Reduce your risk by choosing market-based instruments with lower volatility, so that it may hold positions for longer periods of time. Do not hold positions in the important economic, political or other messages. Remember that is not difficult to restore profits, if unexpected events take just a small part of it.
When you exit the planning should take into account the good, bad and emergency scenarios. In other words, keep the profit protection strategy to exit winning positions, a strategy for limiting losses to exit the losing position, and in case of unexpected developments. You must have all three strategies for each transaction, because it can happen any scenario, once when you open a position.
Your period of retention of position effect on earnings in the planning of outputs. Always define the purpose of profit, which corresponds to your time in the market. In other words, the most profitable trades on the movements of your entrance to the goal within the time period in which you sell. This will allow you to use an exit strategy in their favor, as based on time and on the basis of price.
Exit strategy based on the time required by a small interpretation. Focus mainly on the time period, retaining the position, rather than on price action. Get out of the transaction as soon as the price reaches the objective of profit at the right time. Out of the deal before the price reaches the goal of profit, if the retention time expires. The principle of strategies based on time is to find the best price reached in the selected time period.
Most traders typically begin with an exit strategy on the basis of price. For example, you enter into a long position, and she begins to move into profitable zone. Market rises at a moderate pace, reaching your goal on your earnings in the period of retention of position. You just get out of the transaction on the target price. This means that you close the position and go, not looking at the current price action.
You have just made a good profit on the perfect market, but how you protect yourself on the real market? Start focusing on trends in the more short-term temporary format. For example, when trading in the afternoon schedule, manage profit and loss account using the 60-minute schedule, whenever possible. For short-term graphical model shows you where to move the stop-order to protect profits, or when fully withdraw from the transaction.
Let's emphasize the normal stage for the long position, which ultimately reaches the goal of profit:. Price moves in the profitable zone.
. Price reaches first resistance, and unfolding.
. Price finds support and passes through the first resistance.
This action continues until the price reaches a target. In this scenario, trade management requires an effective stop-order as soon as the price moves in the profit zone. This stop-order shall be moved after the first turn, but stay below short-term support. When the price finally rises above the first resistance, move the stop order just below the new level. Continue the process until the position is not to reach the goal of profit.
Profit is good, but many deals are themselves unstable immediately. Exit strategy in this situation is very simple: get out as soon as the price of violating support for a long position or resistance in the short position. This may sound simple, but there are two problems. First, many traders lack the discipline to take losses when they should be taken. Secondly, many traders do not understand how to place a stop-order and post-position.Take your losses when the market tells you that you are wrong. Each model has a graphical level, strains of which disrupted the entire model. Determine the rate in advance and place your stop-order immediately behind him. Keep in mind that this level changes dynamically with each new bar, so you need to calibrate it often enough. But do not remove the freeze order does not under any circumstances.
You are upset because your stop-order and often work in the good deals? Error lies in your analysis and management of trade, rather than directly to the stop-order. Many traders believe that they can improve their work by placing stop orders where the price should not go. Each marketing tool support or resistance upset over the change of trend. Your analysis should take into account the variability of the primary marketing tool, so that the stop order was placed outside the "market noise".
Finally, you must be prepared for unexpected bad news. Start with training in case of panic and scroll through it many times in his head. Exit strategy is simple: if you can get ahead of the rest of the crowd in front of the door, act immediately. Market after the announcement of the news can save your wealth, if you learn to use it wisely. If you nemozhete flee immediately, closely watch the price action and try to find the best price. The market can do something innovative, as soon as received the bad news, and you may need to take a large loss.Sudden losses are an integral part of business as the "trade". Reduce your risk by choosing market-based instruments with lower volatility, so that it may hold positions for longer periods of time. Do not hold positions in the important economic, political or other messages. Remember that is not difficult to restore profits, if unexpected events take just a small part of it.
www.hardrightedge.com
No comments:
Post a Comment