Being in a trade which gives you nice profit and you decide to exit your trade when the market continues to move up. Here are the Top 5 Forex Exit Trade Strategies which will help you while trading Forex.
AtoZForex – Exiting a trades is harder for almost every Forex traders but it is not so complicated as it looks like. Mostly, people tend to over-complicate their exit due to overthinking of maybe due to greed and fear. For most of the traders entering a trade is much easier than exiting a trade.
Top 5 Forex Exit Trade Strategies
There are some good Forex trading strategies and indicators in the market with almost 80-90 percent accuracy but still, the trader cannot able to turn a consistent profit. Don't worry, I will tell you the Top 5 Forex Exit Trade Strategies which will help you to earn good profits.
#1 Changing the way you think about exit trade
Firstly, think about changing the way you think about exiting a trade. The first thing that comes to the mind of every trader is probably not a stop loss but the target price. It's obvious that every trader thinks about the rewards and want to book maximum profit out of it. It’s pretty normal to think this way because everyone wants fast money, quick profits, and rewards. It takes more mind work to think about stop losses getting hit as an equally important part of exiting trades. Just change to manage your mentality on exiting trades if you want to earn the consistent profit in the market. Hence, think about stop losses and profits while trading and try to manage losses also.
#2 Accept that you simply aren’t going to win some trades
How you manage the losing trades is a critically important factor in determining whether or not you make money in the market. Some Forex traders feel like they have mastered the trading strategy but they fear about the losses. Accept that you aren’t going to win every trade and act accordingly.
#3 Don't get emotional with your exits
Stick to the rule of trading and keep your desired profits and stop losses fixed, no matter how the market reacts. As a trader, you should be consistent in making a decision. Note that you should never change your stop loss further away from your entry point.
#4 Sometimes book small profits
Sometimes booking a smaller profits is worthy rather than moving towards losses. Basically, you don’t need to take a 1:2 or 1:3 risk reward every time you trade in Forex. Hence, it does make a sense square off the trade out with a smaller profit if the Forex trading system is telling you to do the same.
#5 Set and Forget truly is powerful, use it with discretion, though.
Forgetting the previous trade is somewhat a difficult thing for every trader if he moved toward losses. Sometimes people gets emotional due to their previous losses and start loosing more and more. But this is not a good thing for the trader. Hence the trader should use money management tools and trade accordingly using stop losses and Target. Most importantly avoiding fear, emotions, and greed during trading helps a trader to get successful a lot.
Do you think these Forex Exit Trade Strategies works for you? Let us know in the comments section below.