When to exit a trade?

Sep 21, 2020
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Hey, I'm a young trader, I started around May or this year. So far I am yet to be profitable and I have basically blown all my deposits. No, I haven't given up and I definitely won't. I am trying to learn from my mistakes and I am currently writing out my trading plan with pen and paper. I am looking for some tips on signs you guys use to close your trades prematurely or before TP or is it that you guys move your SL into profit as the market moves in your direction with clear structure?
 

Enivid

Administrator
Staff member
Nov 30, 2008
14,204
636
144
Odessa
www.earnforex.com
First, I wouldn't recommend live trading yet. It is best to learn extensively on a demo account first.

As for your question, closing a trade prematurely (before the TP hits) can be done by time. For example, if you planned for the trade to hold for a week, and it is now open for almost two weeks, it is usually a good reason to close it. A good idea here would be to determine the trade's maximum age you are going tolerate before you open this trade, and then act on it when it is time.

Moving SL to breakeven (or profit) makes sense only when the price has formed some significant support/resistance structure before going into your trade's direction again.
 

hayseed

Master Trader
Jul 27, 2010
490
138
109
usa
hayseedfx.com
I am looking for some tips on signs you guys use to close your trades prematurely or before TP
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hey al..... as enivid mentioned, sometimes it cheaper to iron details out on demo.....

reasons for earlier than planned closures, might include some up coming market moving news on your pair, or the technical picture has changed , or end of week house cleaning.....

market moving news..... here the need for early pre planned closures might be relative to trade size.... by that i mean, a standard lot trade might need to be closed while a insignificant 0.01 trade might be allowed to stand and ride out the news.....

technical picture has changed...... here the need for early pre planned closures might be in relative to profit target pip size.... by that i mean, suppose your daily chart pip target was 800 pips...... there are usually several 240 chart technical direction changes during that 800 pips..... that direction change can erase a lot of profit......

end of week house cleaning...... here the need for early pre planned closures might be to relative to account free margin...... with low free margin, it might be wise to reduce weekend risk with the idea to reenter next week......
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it seems to help me by having insignificant sized trades with small pip targets..... by that i mean, 0.01 or 0.02 sized trades with 20 pip targets..... occasionally 0.05...... a few bucks here and a few bucks there add up over 24 hours.......

some try to knock home runs every time at bat...... i just try to get on base safely...... the market will get me home.......h