Entry Se Pehle Exit Socho - Warna Profit Bhi Loss Ban Jayega

The most exciting part of trading is when I get the entry. The setup shows on the chart, candle confirmation in place, and the trader thinks the time has come to take the trade. But one simple question is often not asked before executing the trade: If the market does not move in my direction, where do I get out? 

According to hisaab any trade should be completed before plan entry. Entry is only part of plan, stop-loss, target and exit condition also are part of plan. If trader is only thinking about entry, after position Open emotions starts decision making.

Market profit mein jaata hai to greed target ko door karwa sakti hai. Market reverse hota hai to hope stop-loss ko ignore karwa sakti hai. In the same process ek manageable loss ek bada loss ban sakta hai aur jo profit book kiya ja sakta tha wo reverse ho kar loss mein convert ho jata hai. 

So my simple rule is: decide on exit before entry. And thenit becomes comparatively easier to take or avoid trade.

An exit plan is not just about tagging a stop-loss. A good exit plan should have three things clear at the least – maximum tolerable loss, profit target and when to invalidate a trade.

Suppose you find a bullish setup on Nifty 50. You got your entry level but you have not decided the invalidation point for the setup. If market goes the other way, you will have no objective reference to take a decision. 

New trader starts making this common mistake. He keeps saying, “I‘ll wait a little more, market will return.” After some points, the losses increase, and then the same sentence repeats. Ultimately a small planned loss turns into a large damaging position. 

Otherwise, if exit is already defined in advance, it doesn‘t have to be made again after the decision reaches the market. Things become clear well in advance at what level the idea is wrong and at what level you will be able to secure the profit. 

Magar ek he cheez yar(important point): stop-loss koi punishment nahi hai. Yeh ek trading plan ka risk-control mechanism hai. 

Ek trading profitabn nahi hona zaroori nahi. Toh zaroori yeh hai ki agar aap kuchh galath traidding karte hain to wo aapke sum total haazad ki level ke comparison me zayaad affect na kare.

In case of profit exit planning becomes extremely important. When the trade is in green, trader naturally expects markets to go further up-side and sometimes the expectations turn to be true, but problem is when there is no plan at all to protect profit. 

Assuming aapka trade getting closed in profit of 2000. Aapne target set nahi kiya and thought market would continue it‘s trend and suddenly market reverse hota hai. Profit from 2000 become 1000, then 300 and finally coming in loss.

To minimise this situation, trader can employ different exit strategies such as fixed target, trailing stop, partial booking based on key support /resistance level etc. The method has to be chosen according to method strategy. 

More on Reaction plan than focus prediction. No trader certainty ke saath predict kar sakta hai ki market exactly kya karega. Lekin, markets ke different scenarios ke liye decision to pehle le sakte hain.

Ek simple structure ho sakta hai:

Entry Level There aren‘t many entry level positions specific to operations managers, there are only two.

Level of stop-loss

The initial profit objective is.

 Final target: (the target itself). First level target. Ultimate aim. End goal. The final level in a strategic hierarchy, encompassing the result intended at the conclusion of all lower level influences.

 Invalidation condition.

When these points are more clear in the trade it would be possible to reduce the emotional decisions in the trade.

Another advantage of thinking before you enter is that you have a clear understand of risk/reward. If your trade has a very small potential target and a very large stop loss, even though the entry looks appealing, the set-up may not be practical.

For instance, if agar trader could put up ₹500 capital risk for a chance of a ₹300 actual profit then it is more than reasonable to question the structure beforehand. This does not mean that every trade must follow fixed risk-reward ratio, the figures can vary as per strategy, volatility and market condition.

Akha-kahak sometimes it gives favorable move just after the entry. In this phase a trader should just stick to his original plan. If targets have been achieved then it is not necessary to extend the trade due to greed. 

In the same way, agar setup has gone invalid, karne ki hope, “market wapas aayega” par position hold karne ka planning nahi hota. 

Discipline in trading means control over our decisions not control over the market.

Entry ek possibility create karti hai. Exit is possibility ke actual outcome ko define karta hai. It is for this reason that in experienced planning aapko exit ke baad entry nahi dikhai deti.

The most important lesson for me from this whole concept is - have a plan to exit the trade before you take the trade. Entry could be attractive, look like a good chart setup and there could be good momentum in the market but without an exit plan it turns into an emotional decision on your part.

Next time chart par setup dikhe, order place karne se pehle khud se kuch questions poochna achha practice rahega: Market ke opposite direction mein chala to exit kaise karunga? Kata mi way maximum loss willing ho? Profit aate hi target kya rakhega? Tax condition mera original trade idea valid na rahega?

Agar kah rahe hain ki ye clear answer nahi hai, then it might be best to not rush into the entries.

Participating in profit is also a part of trading, not only in some profit. Sometimes small loss protects capital, and non-completion of planned exit protects existing profit from undesired reversal.

Market will not always go according to your plan. But you can prepare your response in advance.