#tradingpsychology #tradingsignals #tradingstrategy #tradingtips
EXIT STRATEGY
When it comes to exits, all traders fit into one of two camps, fixed target or trailing stoploss.
EXIT STRATEGY
When it comes to exits, all traders fit into one of two camps, fixed target or trailing stoploss.
The easiest way to determine which camp you fall into is to think about your answer to this question
Is it more important for you to have a high win rate ?
or
is it more important for you to have huge winning trades?
Is it more important for you to have a high win rate ?
or
is it more important for you to have huge winning trades?
Fixed targets may have a high percentage of winners, but the average winning trade will probably be relatively small.
Trailing stoploss have most trades ending up as losing trades, or break-even trades, but the few giant winning trades will make up for these losing trades.
Trailing stoploss have most trades ending up as losing trades, or break-even trades, but the few giant winning trades will make up for these losing trades.
Fixed or trailing, it does not matter. What matters is which style you are most comfortable with so that you stick to it !
credits- Alex Nekritin, Walter Peters
credits- Alex Nekritin, Walter Peters
