Wise Exits!

[lbranjord]

I think the strategies section deserves a quick thread on Exit Strategies. This is a psychological hurdle for me and many other traders I know.

I use a simple trading plan currently - 1hr chart
5 EMA, 15 EMA crossover - Is the signal
Stochastic 10,3,3 + RSI 14 - Is the confirmation

My exit should be when the RSI crosses 50 on a posted candle or when the EMA's cross back again. Nothing out the ordinary - probably similar to a lot of plans out there...

Difficulties
How am I supposed to nab that perfect moment EVERY TIME? If I exit early, am I breaking my trading strategy by letting my emotions back into the game:?:

If I need to sleep or work, do I grab the pips in front of me, or set up a target profit:?:

If I see all these strong reversal signals, can I exit the position or will I be a plan breaker :?:

I want to be a mechanical trader, someone who can streamline their results as much as possible and eliminate variables. More than anything I wish I could watch the charts every second and hit these perfect exits, but it is unrealistic to think I will never have to make an EXECUTIVE decision.


No right or wrong answers here, feel free to weigh in!

 

[piparb]

Dear lbranjord ,

I describe these moves in the Gold section :

extrem bouncy and fakey and I don`t know ???

Random walk is gold against this , trivial is linearer than this .....

The only way to act against these pyschopatic moves is to wait , until they gone ....

After a long move came a RANGE with 33% Volatility of the long move ....:smart:

So I trade them and get big wins , because its easy to sell at top and buy at feet ....


have a nice trading u all :clover:

I think the strategies section deserves a quick thread on Exit Strategies. This is a psychological hurdle for me and many other traders I know.

I use a simple trading plan currently - 1hr chart
5 EMA, 15 EMA crossover - Is the signal
Stochastic 10,3,3 + RSI 14 - Is the confirmation

My exit should be when the RSI crosses 50 on a posted candle or when the EMA's cross back again. Nothing out the ordinary - probably similar to a lot of plans out there...

Difficulties
How am I supposed to nab that perfect moment EVERY TIME? If I exit early, am I breaking my trading strategy by letting my emotions back into the game:?:

If I need to sleep or work, do I grab the pips in front of me, or set up a target profit:?:

If I see all these strong reversal signals, can I exit the position or will I be a plan breaker :?:

I want to be a mechanical trader, someone who can streamline their results as much as possible and eliminate variables. More than anything I wish I could watch the charts every second and hit these perfect exits, but it is unrealistic to think I will never have to make an EXECUTIVE decision.


No right or wrong answers here, feel free to weigh in!

 

[rathcoole_exile]

How am I supposed to nab that perfect moment EVERY TIME?

the only 'wisdom' lies in understanding and accepting that you can't and won't .......

 

[lbranjord]

I definitely understand that i will not get the perfect exit most times. Do you consider it breaking the plan if I choose to close and take my profits? If I don't see the ema crossover yet and I must break away from the screens for awhile after maybe 4-5 hrs of watching, do you think it is bad to close out and grab pips at that point?

 

[Shakone]

If your strategy requires you to make constant adjustments of target or stop placement, then I think the only responsible thing when you're leaving the computer is to take the pips. Some strategies will have a fixed target and fixed stop though, so it depends on you. It can be part of your plan that if anything is preventing you from being able to trade, then you close all positions. If I am having internet problems, I'll close positions and remove all orders.