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 stays below 1.1150 after upbeat US data
EUR/USD pulls away from the daily high it set near 1.1200 and trades below 1.1150 on Thursday. Although the upbeat data from the US helps the USD limit its losses, improving risk mood supports the pair in the American session.
GBP/USD clings to gains near 1.3250 after BoE maintains bank rate at 5%
GBP/USD struggles to preserve its bullish momentum but stays in positive territory near 1.3250. The Bank of England (BoE) left the policy rate unchanged at 5%, with only one policymaker voting in favor of a 25 bps cut. In the US, weekly Jobless Claims declined to 219K.
Japanese Yen experiences volatility due to Fed Powell caution, upcoming BoJ rate decision
The Japanese Yen moves sideways amid hawkish sentiment surrounding the BoJ. The Bank of Japan is expected to keep interest rates unchanged on Friday. Fed policymakers raised their long-term projection for the federal funds rate from 2.8% to 2.9%.
Editors’ Picks
EUR/USD stays below 1.1150 after upbeat US data
EUR/USD pulls away from the daily high it set near 1.1200 and trades below 1.1150 on Thursday. Although the upbeat data from the US helps the USD limit its losses, improving risk mood supports the pair in the American session.
GBP/USD clings to gains near 1.3250 after BoE maintains bank rate at 5%
GBP/USD struggles to preserve its bullish momentum but stays in positive territory near 1.3250. The Bank of England (BoE) left the policy rate unchanged at 5%, with only one policymaker voting in favor of a 25 bps cut. In the US, weekly Jobless Claims declined to 219K.
Gold trades within a touching distance all-time high set at $2,600
Gold (XAU/USD) edges higher and trades back in the $2,580s on Thursday after falling to the $2,540s following the US Federal Reserve (Fed) decision on interest rates the prior day. The 10-year US T-bond yield stays above 3.7%, limiting XAU/USD's upside.
Bitcoin extends gains after Fed cut interest rate
Bitcoin extends recent gains and trades above $62,000 at the time of writing on Thursday, following a 2.4% increase the previous day after the Federal Reserve’s (Fed) dovish decision to cut interest rates by 50 basis points.
BoE expected to keep interest rate unchanged at 5% as price pressures persist
After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.
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