Building the Right Exit Strategy for Trading

One of the elemental parts of Forex trading in Indonesia is terminating a transaction. However, this is also considered by many as one of the hardest. Developing a successful exit strategy can be frustrating for many, especially the ones newer to this arena and with lesser exposure to the live scene. The concept of trade exit is given lesser significance and emphasis than it should be in the Forex learning stage. In this article, we’re going to be discussing the importance of an exit strategy in online trading, what makes it challenging, and some of the best ways to get it done.

What makes it challenging?

There is one principal reason for the difficulty people experience implementing their exit strategies: The general mentality is that an exit method is just an entry method, but applied in reverse. This is flawed and harmful thinking that leads people to miss the crucial elements of an exit plan. An exit and an entry strategy could be held as two completely different elements of the trading process.

Choosing the right method

Different traders utilize different methods with their exits, and there is no uniformity with this concept. One must tailor his methodology as per his style of working and preferences. When determining the method that you need to use, you must consider whether you envision long term or short term movements for profit making. Below are a few reliable strategies for exiting trades in the most efficient manner with optimal profits:

Strategy 1

In this strategy, you need to view the space between the trade entry and the stop loss zone as one component of risk. The profits that you would make would be on a scale built on this. For example, if you wish to make double the profit, then you set a profit target of 100 pips where the stop loss is at 50 pips.

Strategy 2

This approach represents a time-based exit system. Here, a trader decides to exit the trade that remains open after a designated period of time.

Strategy 3

This is a system based on areas of support and resistance. One would need to locate support/resistance zones with the use of graphs and then set targets for profit.

Strategy 4

When your trade is moving in a strong direction over which a clear trend line could be drawn, then watch out for breaks in the trend line and use them as indicators for exiting the position.

Conclusion:

A methodology for exit is a key component in a broad and comprehensive trading strategy. If you’re having trouble with developing your own unique exit plan, then avail the guidance of professionals in the field. WesternFX is among the leading Forex brokers for traders in Indonesia and the nearby region. Call us now to raise your bar in trading and enforce better strategies in the market.

A Guide in Mastering Forex for Beginners

The currencies exchange is probably the most productive markets at present. It attracts investors and traders from across the world looking to draw additional revenues. Performing here takes a particular set of skills, years of experience, and the ability to manage risks efficiently. A suitable trading style is the bedrock for success in this area. Apart from this, one needs to understand the intricacies of the market, keep an eye on the patterns, and to evolve based on the trends.


Emotional Trading

The basic rule for working with markets is to have your decisions rooted in a logical approach. Beginners to the field are more prone to making judgments on an emotional and intuitive level, making decisions based on hope. The foundation of good trading is the ability to keep your emotions reined in. This includes hopes, fears, as well as the tendency to react to a negative outcome. A balanced mind is critical to success in the field. However, the fear of losing money forms an integral part of a trader’s psyche. As a result, this stable emotional state can only be nurtured with discipline and experience.

Mastering the Charts

Charts and analytical data are elemental to Forex trading, both here in Indonesia and around the world. They present a careful examination of the market and the circumstance hanging over it. However, it is also important to note that currency pairs are prone to fluctuation for unpredictable reasons; ones that even the charts would fail to predict. As a result, just as crucial as it is to base your decisions on the data provided by these analyses, one needs to also remain neutral and prepared for swings in the market that arrive beyond prediction.

Trading Style

As mentioned earlier on, the cornerstone of success in this area is a good strategy. One needs to develop a plan based on his preferred style of trading, one that most accurately suits his persona. This takes experience. A beginner must also be ready to tailor and refine his strategy over time, keeping an open mind to accept changes rather than stubbornly sticking to one. There are a variety of major trading strategies that you can adopt from present trends, from scalping to ‘swinging’, to many others that professional traders use.

Conclusion:

Success in this arena comes only with the different aspects of your career being positioned in the right manner. The final key in this game is having a good broker to guide you through the tough trade. There are a host of Forex brokers in Indonesia that you could draw expertise from, as well as international brokers that operate in many countries. WesternFX is one such broker. We have been working in this area for many years, partnering with clients across several countries. Get in touch with us to successfully navigate through this field and grow your revenues.