Forex Exit Strategies to Exit a Trade Without Losing Money

Do you want to know more about forex exit strategies and how to exit a trade without losing money? Watch our latest video and get profitable trading results.

Forex Exit Strategies – A simple but effective guide

Sooner or later, the trade does whatever it does, and you are forced to exit. The real question is whether or not you have a plan ahead of time. After all, you can enter a trade at any point, and for any reason. Exiting a trade determines on whether or not it was a winner or loser as far as profit is concerned. Regardless what happens, you have to exit the trade sooner or later, either to collect the prophets, take the loss, or worse yet get a margin call.

I cannot tell you how many times I’ve talked to a new trader who has lost a significant amount of money after refusing to exit the trade. If a trade goes against them, they will quite often move their stop loss, hoping for the markets to turn back around in their favor. Unfortunately, this typically leads to more losses, and then eventually they exit the trade with a much bigger dent in their trading capital than was necessary.

The best piece of advice for exiting a trade is to simply stick to whatever area or level you said would be the reason for exiting this trade. It doesn’t matter if the result is good or bad, just that you stick to your trading plan. By doing so, you can build up enough confidence in your own trading that you will eventually come out ahead. You cannot get too wrapped up in a particular trade, as trades come and go. Because of this, it’s only a matter of time before another opportunity arises, and if you refuse to exit a losing trade, you may not have the trading capital to take advantage of the next opportunity.

Also, becoming too greedy can cause issues as well. I have seen new traders refuse to take profits as they initially wanted to, and then see the market got right back against them, causing losses. That of course is not what you want to see as well.