Advisory services offer suggestions for trading based on specific strategies or techniques, allowing traders to take the recommended trades and implement them using the approach provided by the service's training or their preferred self-proven methods. Some traders ask why exit alerts aren't provided in addition to the entry alerts. There are various reasons why, but mostly because each trader may have their own exit depending on how they implement the suggestion. For example, a trader who trades a stock suggestion using options may wish to take profits earlier than someone who trades the stock, because options have leverage and can achieve desired gains and hit their goal more quickly. An exit alert for the option trader would be late in this example.
Some services offer one or more targets as part of the alerts, and in that case, you already know where to take profits, and don't need another alert to know when to exit.
For services that do not offer exit alerts, a solution is to determine the exit point(s) at the time of entry and set up the exit(s) when you enter the trade. Unlike in investing, in trading, the exit methodology is typically a part of the trade selection process. The exit(s) may be percentage-based, hitting a prior price level, trailed-stop-based, etc. In analysis, determine where profits will be taken before entering a trade and use the likelihood of achieving that target as a criterion for taking the trade.
For example, if your goal is to achieve X percent on a trade, we can determine the exit price before entry and assess whether it's likely to be reached by examining the chart. Since traders following the same alert may have different entries, they will each be able to determine their own appropriate exit point at trade setup. We could skip the trade if it's unlikely to hit our target. For example, determining whether there is significant resistance between a bullish entry and target can be used as a qualification for entering the trade.
With prior knowledge of your achievable exits, you can place your exit orders at the time of entry and effectively automate the target exit of your trades without exit alerts. You may still want to manage stops as the trade progresses, but having the targets preset is a great way to simplify trading with a clarified exit strategy on each trade. This would be of great help when managing multiple trades. And your exits can be applied to whatever way you implement the trade (e.g. stock, or option, etc.), customizing the exit to your own needs and specific entry, and eliminating the need for separate exit alerts.
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