Three exit methods and choices in foreign exchange trading

[JRFX Forex player]

In foreign exchange trading, one of the key links that determines the outcome of a transaction is exit. How to effectively manage the exit timing of profitable orders has become an important issue that traders need to face. You can also share your exit experience.

The following are three exit methods I have summarized:

1. Fixed stop loss exit method

This method is to set a fixed stop loss point, and close the position immediately when the market price hits the stop loss point. The advantage of doing so is that it can stop losses in time and avoid further losses. However, it also means that you may exit too early in market fluctuations and miss out on subsequent possible profit opportunities. This method is suitable for traders who pursue high winning rates and smaller losses.

2. Partial profit protection exit method

Under this strategy, after making a certain profit, traders adjust the stop loss point to near the cost line to ensure that they can at least protect their principal or make a small profit. This method is more flexible than fixed stop loss, and can capture longer trends to a certain extent, while also reducing the possibility of losses. It is suitable for traders who have a certain degree of judgment and patience in the market.

3. Profit-running exit method

Profit-running means retaining positions to pursue higher profits when the market trend is favorable. Traders can adopt a strategy of gradually increasing the take-profit point to maximize profits when the market continues to move in a favorable direction. This method has a higher winning rate, but it is necessary to endure some profit-taking that may be caused by market fluctuations. It is suitable for traders who can wait patiently and can track market trends.

Trading strategy signal sharing community: https://t.me/jrfxasia2024

Newbie welfare collection: https://www.jrfx.com/2024/april/en/?396

 

[Polakandil]

I trade at FXOpen mostly using stop loss and profit target strategies because they are not always in front of the screen, but when I am focused in front of the screen, I like to modify the stop loss to lock in profits when I get floating profits. Meanwhile, for exit points, pay attention to price behavior as reflected in candlestick patterns and price reactions.

 

[Polakandil]

Using a trailing stop is quite effective for scalping, which can maximize profits when prices rally strongly. Using the MT4 trailing stop feature must be turned on because it will only work if the MT4 platform is connected to the broker's server.

 

[Fin_Trader]

Using a trailing stop is quite effective for scalping, which can maximize profits when prices rally strongly. Using the MT4 trailing stop feature must be turned on because it will only work if the MT4 platform is connected to the broker's server.

trailing stop is best used on a strong trend, because if you use it in a flat, you can lose part of your profit.

 

[Polakandil]

trailing stop is best used on a strong trend, because if you use it in a flat, you can lose part of your profit.

Yes, that's right, in a flat market using a trailing stop is easier to hit due to short-term volatility, traders also need to identify the possibility of a strong or weak trend to take advantage of this feature.

 

[kplFX]

Thank you to the author of this post for sharing. The information provided is very helpful in gaining a deeper understanding of forex strategies.

 

[mecbelly11]

For exit if I feel the trade is not working I come out ASAP. With small profit or loss if I can. For taking profits it depends on the the trade. Maybe I'm doing the breakout trade where stop losses are triggered and price shoots up.

Kodi​

 

[Polakandil]

By cutting our loss early and letting your profit run it is possible to get effective trades once in a while even with some previous mistakes. However, I still like to pre-set stop loss and target profit, while sometimes leaving the chart, except for short-term trading needs more focus.

 

[VasilTodorov]

In foreign exchange trading, one of the key links that determines the outcome of a transaction is exit. How to effectively manage the exit timing of profitable orders has become an important issue that traders need to face. You can also share your exit experience.

The following are three exit methods I have summarized:

1. Fixed stop loss exit method

This method is to set a fixed stop loss point, and close the position immediately when the market price hits the stop loss point. The advantage of doing so is that it can stop losses in time and avoid further losses. However, it also means that you may exit too early in market fluctuations and miss out on subsequent possible profit opportunities. This method is suitable for traders who pursue high winning rates and smaller losses.

2. Partial profit protection exit method

Under this strategy, after making a certain profit, traders adjust the stop loss point to near the cost line to ensure that they can at least protect their principal or make a small profit. This method is more flexible than fixed stop loss, and can capture longer trends to a certain extent, while also reducing the possibility of losses. It is suitable for traders who have a certain degree of judgment and patience in the market.

3. Profit-running exit method

Profit-running means retaining positions to pursue higher profits when the market trend is favorable. Traders can adopt a strategy of gradually increasing the take-profit point to maximize profits when the market continues to move in a favorable direction. This method has a higher winning rate, but it is necessary to endure some profit-taking that may be caused by market fluctuations. It is suitable for traders who can wait patiently and can track market trends.

Trading strategy signal sharing community: https://t.me/jrfxasia2024

Newbie welfare collection: https://www.jrfx.com/2024/april/en/?396

Great breakdown of the exit strategies! Personally, I go with the partial profit protection method—it helps me lock in some profits while still aiming for bigger gains. It’s all about finding what works for your trading style and how much risk you’re comfortable with. Anyone else mixing these methods or have other exit strategies that work for them? Share your experiences!

 

[Imogen Beaumont]

I wish the instruction were as good as the profile pic, but unfortunately it's not.

 

[Polakandil]

Trailing stops can actually be used to modify automatic stop losses when selected parameters are reached. When the market is trending, using trailing stops can maximize profits, but in sideways markets, this is less effective.

 

[Fin_Trader]

For exit if I feel the trade is not working I come out ASAP. With small profit or loss if I can. For taking profits it depends on the the trade. Maybe I'm doing the breakout trade where stop losses are triggered and price shoots up.

9apps​

If the market is sideways, it is dangerous to keep trades in one direction for a long time, you can either lose profits or simply not earn and get a loss. On a trend, trailing stop is a good solution, but when the main goal has already been achieved.

 

[Fin_Trader]

Trailing stops can actually be used to modify automatic stop losses when selected parameters are reached. When the market is trending, using trailing stops can maximize profits, but in sideways markets, this is less effective.

Often in the trading process it is necessary to determine exit points, sometimes it is difficult to immediately understand the situation and you have to adapt

 

[Polakandil]

It is undisputable that the market can move dynamically, and allowing missing one pips could lead to contrary movement. I think each trader has his own strategy for determining the exit point.

 

[Fin_Trader]

Without knowing how to determine the entry and exit points according to the strategy, there is nothing to do on Forex. Even investors working long-term must know how to determine the best entry and exit points. And this applies to absolutely all markets (stock, currency, commodity, Forex) and assets.

 

[Lee.me]

Very nice and informative, however, if you cannot control your greed non of these methods will be good for you.

 

[Polakandil]

I think many traders have proven that greed causes more big losses than profits. Retail traders cannot control the market, greed cannot survive in the long term.

 

[borzy]

I think many traders have proven that greed causes more big losses than profits. Retail traders cannot control the market, greed cannot survive in the long term.

Greed indeed leads to significant losses, especially when a trader systematically uses high leverage without considering volatility. However, greed is necessary in general because, without it, it’s impossible to overcome the fear of losses—everything just needs to be in moderation.

 

[Polakandil]

Greed and fear are two problems in trading psychology, and indeed all emotions should be moderated as much as possible so that all trading decisions are based on rational thinking.

 

[borzy]

Greed and fear are two problems in trading psychology, and indeed all emotions should be moderated as much as possible so that all trading decisions are based on rational thinking.

The main issue with fear and greed is that we often experience them at the wrong phases of the market. When the market crashes, fear can hold us back from placing trades, causing us to miss potential opportunities for strong returns. On the other hand, during FOMO phases, we tend to become overly greedy, which often leads to painful lessons later on. The key is to develop patience and learn to let these emotions guide our decisions at the right moments.