When a Good Trade Starts With a Clear Exit Plan
Many traders spend most of their time thinking about where to enter a trade. They study charts, look for patterns, compare indicators, and wait for a possible opportunity. But one important part of the decision is often considered too late: the exit. A trade can look attractive at the moment of entry, but markets do not always move according to expectations. Having a clear exit plan before entering can help a trader understand the potential risk and avoid making emotional decisions after the position is already open. An exit plan is not simply about closing a losing trade. It also includes knowing when to take a profit, when market conditions have changed, and when the original reason for entering the trade is no longer valid. Know the risk before entering. Define invalidation levels in advance. Avoid changing the plan because of emotions. Review exits regularly through a trading journal. Entry and Exit Should Work Together A trading setup ...