Exit Strategies

exits define your profit and loss. Entry matters less than exit.

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Exit Types

1. Target Exit

Exit when target hit.

Entry: 100
Target: 110
Exit: 110

Pros: Consistent, predictable

Cons: May leave money on table

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2. Stop Exit

Exit when stop hit.

Entry: 100
Stop: 95
Exit: 95

Pros: Limits losses

Cons: May exit too early

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3. Trailing Stop Exit

Exit when price reverses.

Entry: 100
Trail: 5% below high
Price: 110 → Trail: 104.50
Exit: 104.50

Pros: Locks profit

Cons: May exit early

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4. Time Exit

Exit after time period.

Entry: Monday
Exit: Friday

Pros: Reduces overnight risk

Cons: May exit prematurely

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5. Signal Exit

Exit on opposite signal.

Entry: RSI < 30, buy
Exit: RSI > 70, sell

Pros: Follows momentum

Cons: Subjective

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Exit Checklist

☐ Exit type chosen
☐ Specific rules defined
☐ Written in system
☐ Emotion not involved

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Key Takeaways

1. Define before trade — Exit rules first
2. Follow rules — Don’t change
3. Trail profits — Don’t give back
4. Accept losses — Part of trading

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Related

entry-strategies.md >>>

risk-management.md >>>

swing-trading.md >>>

Exit defines your P&L.