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.