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 slightly above 1.0700 after mixed US data
EUR/USD lost its traction and turned negative on the day but managed to hold above 1.0700. Although the upbeat Employment Cost Index data boosted the USD earlier in the day, the weak consumer sentiment reading limits the currency's gains.
GBP/USD declines toward 1.2500 on renewed USD strength
GBP/USD turned south and dropped toward 1.2500 in the second half of the day. The US Dollar stays resilient against its rivals following the strong wage inflation data and doesn't allow the pair to gain traction.
Gold extends daily slide toward $2,300 as US yields edge higher
Gold stays under bearish pressure and declines toward $2,300 on Tuesday. The benchmark 10-year US Treasury bond yield stays in positive territory above 4.6% after US Employment Cost Index data, weighing on XAU/USD.
XRP hovers above $0.51 as Ripple motion to strike new expert materials receives SEC response
Ripple (XRP) trades broadly sideways on Tuesday after closing above $0.51 on Monday as the payment firm’s legal battle against the US Securities and Exchange Commission (SEC) persists.
Eurozone inflation stable as the outlook on prices gets increasingly muddied
Eurozone headline inflation remains stable at 2.4%. With higher energy prices and improving domestic demand, questions about the direction of inflation become louder.
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