Trade Exits vital in Trading

The final result of a forex trade depends immensely upon the exit of the trade. The exit is as important as the entry of the trade. If the entry is timely but the exit is not, there are chances of loss. On the other had if the entry is poor while the exit is well-timed, we may recover a profit still. It’s more the exits that determine the success of a trade than the entry. This can be easily tested. Any entry strategy can be combined with varied exit strategies. It will be quickly seen that results can be tremendously changes with small modifications to the exits. The importance of apt exit cannot be overly emphasized –trade results are not independent of the exit. The simple truth is that exits can make or break a trade.


To gauge the soundness of an entry strategy, the trader can start to simply exit the trade following a number of bars. When the entry is combined with judicious exit, the strategy can turn out to be excellent.An entry gets the trade started in the right route. The effectiveness of an entry can be testers by measuring the percent of time it gets the trade begin in the right direction. For instance, an entry “X” has 60% successful trades after five days, it is better that entry “Y” which ash only 40% success.

It can be seen that it has only been decided as to which the better entry is while there has been no comparison of the profitability itself. Thus we can see the purpose of entry is just to get the trade started in the right way.After this everything depends on exits. Entry ‘Y” can happen to make more money because a specific exit we would choose .we can easily adjust to find that entry.For best results right entries need to be coupled with right exits.