Exit Rules
Exits rules are part of the decision to take a position. If the conditions for exiting positions are not fully defined when entering the trade, the trader may hold a losing position for too long in the hope of seeing the market returning. Inversely, the trader may not close a winning position at a high probability target, risking the trade to turn into a loss.There are two types of exits:
1. A stop loss to get out of a bad trade.
2. A profit target to realize profits when the market moves in your favor.
Shall I turnaround a position at the stop loss?
There is a premise in technical analysis that says that each trade set-up, long or short, needs to stand on its own merits. Hitting a stop loss doesn't automatically make it a good trade in the opposite direction. In fact, getting the direction right is the easy part. The hard part is finding a new target and therefore the reward to risk that's favorable for the new set-up. Read More
Do you want to learn more?
REPORT: It Hit Stop Loss? That Must Be Wrong - Yohay Elam
REPORT: Top Three Stop Loss Methods - Littlefish FX
REPORT: Managing Your Stop Loss in Trading - Rick Wright
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.
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