In today’s episode, you’ll discover 5 things to look for before you exit a trade.
So go watch it now...
** FREE TRADING STRATEGY GUIDES **
The Ultimate Guide to Price Action Trading: https://www.tradingwithrayner.com/ultimate-guide-price-action-trading/
The Monster Guide to Candlestick Patterns: https://www.tradingwithrayner.com/candlestick-pdf-guide/
** PREMIUM TRAINING **
Pro Traders Edge: https://www.tradingwithrayner.com/pte/
Pullback Stock Trading System: https://pullbackstocktradingsystem.com/
Price Action Trading Secrets: https://priceactiontradingsecrets.com/

Hey hey: what's up my friends, so in today's episode i want to share with you five things to look for before you exit a trade number one. The first thing to look for is to ask yourself what is the goal of a trade right because, depending on you know the type of trader you are, you could be looking to capture a swing in the markets or you could be a trend follower looking to Ride a trend in the market, so the first thing that you must do before you, you know exit your waiting trade is to determine what type of trade this will be. Is this a trade about you know just about capturing one swing, capturing one move in the market, just one move, or is this going to be a trade to write trends in the market where you're willing to you know accept by the app and flow of the Market to embrace the drawdown, the pullback that comes along the way with the hopes of you know, riding a trend. So that's the first thing that you should look out for right to ask yourself: is this a trend following trade or is this you know a trade to just capture a swing number two.

If you are looking to capture a swing in the markets right, then what you want to pay attention to is, you know, swing high and lows in the market, support resistance. So, for example, let's say you you know are a swing trader. You want to capture a swing and you happen to buy at support. Market is moving in your direction.

So at what point do you exit your trade? You know: how do you exit your trade such such that you can actually capture a swing in the market? So my guideline too, is that if you're a swing trader trader looking to exit your trade right, then you want to place right. Your exit at a level where, or rather at a level before, opposing pressure sets in so, for example, if you buy and support and the market does move in your favor. You want to ask yourself, you know where might opposing pressure come in, or in other words, where might selling pressure come in? Where might sellers step into the market and push the price down lower and a few common levels to pay attention to is swing? High area of resistance - i would say these two are pretty much the most common one. So if you're a swing trader, pay attention to support resistance in the market, pay attention to swing highs and lows, because this is where opposing pressure is likely to step in number.

Three, if you are a trend follower, then what you want to look for is to use a technique that allows you to write a trend. So there are many techniques out there, but generally generally, when you want to write a trend right, you have to embrace. You know watching your winners become losses. That is just the fact of trend following it's impossible to write a trend without having the willingness right to to end the all the drawdown to endure the pullback right.

That is, you know, uh guaranteed, to occur in every trending market, so you want to adopt a trailing, stop loss. What this means right is that if the market moves in your favor, then you want to progressively shift your stop loss higher right. So your so your trade right still has that you know that wiggle room to go up and down right uh without you know, stopping you up for a loss too early, or rather without stopping you out of the trade too early. So there are numerous trailing stop-loss techniques that you can use.
Some of the more popular ones are, for example, uh. If you're a discretionary trader, you can use the price structure of the market to trail your stop-loss, for example, if you buy a breakout market moves in your favor, you know how do you know when to to exit right your trade right, and you still want to You know capture the up trend, so what you can do is you know, as the market moves higher, you would expect to see a series of higher highs and higher lows like up down up down. So what you can do is you can trail your stop loss right on the previous swing low. So, as the market continues to make a series of higher highs and higher lows, you will continue holding that trade, but when it breaks the previous swing low, that's where your uptrend right sort of got destroyed.

The pattern is kind of like you know no longer. You know how an uptrend you look like, so that's when you can exit your trade and you know hopefully right the trend has moved. You know enough in your favor, where you can. Actually you know capture still uh the mid right of the move.

Okay, so that's the third thing right, using a trailing stop loss. At the same time, you can also use things like moving average, or you know chandelier, crosstalk and stuff, like that number four uh you want to pay attention to. You know exiting your traits based on emotions, because this is usually when you are exiting your trades right at the worst possible time when you can no longer take the pain anymore, because, let's be honest right when, whenever you exit your trades right, most of your losing Trades is usually because you, you can't take the pain any longer. The market has moves again.

You move against you. So much that you know you don't want to endure the pain anymore. You want to call it quits enough i'll, just bail off the trade and then what happens more often than not? Is that you know you pretty much sell near the lows and the market rebound higher, so so be aware of exiting your trades based on emotions, because when the market moves in your favor, you are usually pretty confident. You will don't have the incentive, the feeling to want to exit your trade, the the emotions right that cause you to want to exit your trade, usually is when the market moves against you.

So a very quick fix right is to ahead of time right, pre-determine right. Where is your stop-loss level pre-determine right ahead of time right? Where will you get out of the trade right if the market, you know you know, moves against you, because once you have defined that level ahead of time once your risk management, your position, sizing, is all based on that level. If the market moves against you, so what you already prepared for it, so this way you will not be. You know, exiting your trades based on emotions, which is usually right.
You know exiting your trades at the worst possible time so plan this ahead of time. Right, even before you put on a trade and the fifth and final thing that i have for you is, is before you exit your trade. Ask yourself, honestly: is this: according to your trading plan, because there's no point right, you know exiting your trades. You know, based on certain technicals and market, certain guidelines that you follow, but if that's not part and parcel of your trading plan, then then it doesn't matter because your trading plan is what matters.

Your trading plan is what guides you to have a consistent set of actions, because without a consistent set of actions, you will not get a consistent set of results, so your trading plan right is what gives you consistency if you follow it. So this is why you must develop your trading plan. You must right have the discipline to see through it right, no matter, you know how difficult things are, because if you can follow your trading plan on each and every trade right, regardless of the outcome, i'll say well done right. Give yourself a pat on the back, because you clearly right have what it takes right to become a winning trader.

Someone who can you know, follow their plan and, with you know, a consistent set of actions. You will eventually achieve a consistent set of results. Okay, so just a quick recap before we end number one, the five things to look for before you exit the trade number one is to ask yourself: is this trade, a trend following trade or a swing trading trade? Number two? If you're a swing trader, you can look to exit your trade before opposing pressure. Sets in this could be levels like support resistance swing, high swing, low, etc.

Number three: if you're a trend follower - and you want to trail your stop loss, you can use it using your price structure. Moving average et cetera number four: don't exit your trade based on emotions, because this is usually you know at the worst possible time when the market is really at its maximum. You know pessimism or maximum optimism, and i mean usually the case are not always but more likely than not and number five have a trading plan and follow it closely. Okay - and you want to you, know, dictate your exits right based on your trading plan and nothing else, not the news, not your opinion, not the noise of the market.

So with that said, i wish you good luck and good trading. I will talk to you soon. You.

By Stock Chat

where the coffee is hot and so is the chat

24 thoughts on “5 things to look for before you exit a trade”
  1. Avataaar/Circle Created with python_avatars Jensens Photography says:

    I'm currently learning to hold my trades. iv come from a massive losing streak. i was doing okay before this said losing streak but after watching Rayner my trading and understanding is improving alot. and cause i was getting use to losing i feel when im in the green i worry it will reverse. so nearly every trade i closed was to early and iv missed out on make 2-3x my risk instead of the .80-.90rr iv been closing on. its hurt me this week that i made 5% but left alot more on the table due to me worrying about price reversing on me.

    Anybody else going thru the same thing as me?

  2. Avataaar/Circle Created with python_avatars gift benjamin says:

    Lisa_upfx att lnsta’gram is my mentor and she taught me how to handle the financial market since I made more profit in trading and all thanks to her for helping me, God bless you ma, for helping me prepare for what is to come.,…..

  3. Avataaar/Circle Created with python_avatars Jaydan Maurice Matthews says:

    Hey rayner do a video educating us how to set take profit in a trending market where there's no obvious psychological level

  4. Avataaar/Circle Created with python_avatars Dellphina Teo says:

    Very systematically structured & easy to understand. U are awesome. Glad to have found u.

  5. Avataaar/Circle Created with python_avatars Love Always Wins! says:

    "With a consistent set of actions you will receive a consistent set of results." You're like a prophet sent to us teaching how we can inherit the kingdom. Thanks for the wisdom. Applying it as I speak and while I'm not a master at stocks I'm able to see where I went wrong investing a few months ago. Thx again!

  6. Avataaar/Circle Created with python_avatars Georgia says:

    Trdigng is not only about how to do technical analysis the emotions, psychology, approach are big factors too
    Message Rutherford for their signals or investment service on wh-a-t-a-p +_1_9_0_8_5_2_0_6_8_6_2

  7. Avataaar/Circle Created with python_avatars POY says:

    I only have $9 in my trading account and I want to see if I can turn it into $50 in a month

  8. Avataaar/Circle Created with python_avatars Virtuoso XtrmLine says:

    Hi Rayner, i wanted to ask you, if you can share with us how you pick your stocks, or how we can go about picking stocks to fit our needs or style of trading, whether if its day trading or swing trading, etc.. Thanks Chris

  9. Avataaar/Circle Created with python_avatars Стефан Стефанов says:

    I want to ask is it possible to make a video about crypto cuz I am new to trading but the weekend I see that only crypto is open in the market so i wanted to try a swing strategy with 1 hour time frame but I'm not sure if it will work

  10. Avataaar/Circle Created with python_avatars Vin Roller says:

    Hey hey.. what's up Rayner.. thanks for sharing your knowledge as always.. good luck👍🏼👍🏼

  11. Avataaar/Circle Created with python_avatars Muhammad Hafizh Islam Sadida says:

    has anybody here watched "Nervous so much" on youtube ??? 🤣🤣🤣

  12. Avataaar/Circle Created with python_avatars potential of stocks says:

    Love from india <3. Best knowledge thanks so much for all that hard work.

  13. Avataaar/Circle Created with python_avatars 17Btrma002 Abhishek Verma says:

    I wished he published this video 2 days before… I just lost my profit to down 1 dollar

  14. Avataaar/Circle Created with python_avatars Ken Work says:

    Thank you, emotions hardest think to conquer. Would pull the trigger when watching it fall just to see the rebound go higher and higher then Mentally beat myself up with the should of, would of, could of….

  15. Avataaar/Circle Created with python_avatars Manoj Naidu says:

    Hey Rayner,
    Could you please show us how to use ichimoku cloud trading strategy?
    Thanks in advance.

  16. Avataaar/Circle Created with python_avatars HR Channel says:

    Thank you very much Sir Rayner for this valuable video tutorial, I gained more confidence from your wisdom

  17. Avataaar/Circle Created with python_avatars MrDmadness says:

    My plan was invest $100 and try to turn it into $105 in 2 weeks.. im happy to say I turned it into $244.47, and did so without shorting anything. I bought low and sold high, and learned a lot.. im also keenly aware that I could have made much more if I was riding downturns also and that it was a lucky week regardless, 144% gains are not the norm im sure. Thanks for all your valuable lessons, they have helped me a lot.

  18. Avataaar/Circle Created with python_avatars Real Kaizer Chiefs News says:

    Since I started following you last year, I never stopped because I'm learning something new every day from you.🇿🇦🇿🇦🇿🇦🇿🇦🇿🇦

  19. Avataaar/Circle Created with python_avatars Adam J says:

    Your awesome man, learning so much from you, youre a Great teacher! Appreciate you alot.

  20. Avataaar/Circle Created with python_avatars Bruce Russell says:

    Great video! Hi – I was wondering what you would recommend for the best strategy(s) or indicators for option trading, long or short term….such as entry and exit points? My option trading at this time consists of “Buying” just Calls and Puts? Any advice would be greatly appreciated! Thank you!

  21. Avataaar/Circle Created with python_avatars Hurja Harju says:

    Your videos are great, thanks for many tips from previous videos.

    Don't got so much money to invest, but I am grinding up my portfolio slowly

    If I get rich in near future with analyzing candle charts, it is thanks to you mostly 🙂

  22. Avataaar/Circle Created with python_avatars Odilbek Umarov says:

    What would be your suggested platforms, brokers for trading in Singapore and Malaysia for beginners with smaller budget 😅

  23. Avataaar/Circle Created with python_avatars Joy Jones says:

    Thank you Rayner, you just answered the one question on my mind this morning – the when and how to exit my trades. God bless you dearly.

  24. Avataaar/Circle Created with python_avatars Himalaya Garg says:

    From last few weeks you are making so many videos on exit trend… Any specific reason?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.