What are your exit strategies?

Discussion in 'Trading' started by bigboy, Aug 13, 2002.

  1. bigboy


    I am very new to trading, I read lots of books says let the profit run is the best way to exit. Is it true?
    Thx in advance!
  2. Always let your profits run. However, when they stop running--BAIL OUT! My personal trading style doesn't allow me to stay put when momentum hesitates. When it stalls, I'm gone--See ya!
  3. bigboy


    Thx thunderbolt.
    Do you use a trailing stop to be stopped out or get out right away?
  4. Go to roof. JUMP!
  5. William



    This topic is huge, maybe I can get something rolling here.

    Okay - letting your profits run is true to some degree, but you have to look at the whole picture, you cut something off here...

    "Let your profits run and cut your losses quickly"

    There is an idea here, and the understanding of this idea is paramount to successful trading. The idea is this - to create some balance in your trading strategy as a whole to where you will be able to turn a consistent profit, and still take normal losses everynow and then. Losses are just part of trading, everyone who trades understands this. It's downright impossible not to lose every now and then. The balance I am talking about here is very complex, and it all has to do with your own trading strategy. You see, someone who loses more than wins is going to have to cut his or her losses very quickly and let their profits run even more if this person is going to make any money. And on the other hand, a scalper who has a high percentages of wins is going to let his or her profits run less. They take profits quickly as well as cut their losses quickly. So, as you can now see, it all depends on your trading strategy. And if you are new to trading, this should be your main focus if you truly want to be successful.

    Okay, finally I'll answer your question. For me I try to decipher a trending day from a choppy day, since I am an intraday trader. If it's a trending day I'll try to let my profit run by using a trailing stop. If it's a choppy day I'll use a 1:1 risk:reward to figure where I should take a fixed profit. Most all traders I know like to scale out of a position, I don't, but then again you must remember this all has to fit into a trading style / strategy as a whole.

    Let me know if anything is confusing.
  6. rcreal


    Usually it's a margin call :)
  7. mostly at market. occasionally in the spread, if I feel the move is short lived.
  8. William


    lol =)
  9. Bono