A student of mine asked me today if he should continue with his exit strategy because he wasn’t feeling comfortable using it and felt that he was starting to struggle with his consistency as a result.
My answer was that he should absolutely stop using it if he was starting to feel like that. The problem he had was that he didn’t want to get caught up swapping and changing his exit plan all of the time as that would be a form of system chasing.
Which is correct, but there is a fine balance to be made between system chasing and blindly following something that you don’t like!
There are many ways to exit the market and you should try out these methods whilst you are putting your initial trade plan together to save problems later on.
The key thing to bear in mind is that as soon as you hit upon a strategy that works for you and that you feel comfortable with, you should stick to it no matter what, which of course will be much easier if you are comfortable with it in the first place.
In summary everyone finds different methods or approaches that suit them personally and it is important to realise this, so that you too can quickly find an exact method that you find easy to implement and comfortable sticking with in the long term.
Hi Jarratt,
Yes I agree with that one – its funny how no one form of trading suits anyway and it has to be tweaked. In my self, I don’t think I have the patience to wait weeks for very high probability trades – I like to take the balance inbetween and have a good amount of opportunities at good accuracy (compared to minimal opportunities at excellent accuracy).
Always a lot of trade offs in this game!
Cheers
Ed