When To Exit An Emini Trade
October 6, 2012 at 10:34 PM When To Exit - Required Reading For All Emini Traders
Traders of all types: Emini Futures - Stocks - Options, spend a lot of time and money trying to figure out the "perfect time" to enter the market. We're guilty of it ourselves. We've built unique proprietary indicators that do an awful lot of mathematical heavy lifting in the background while we sit patiently in our tidy offices and wait... and wait... sip our coffees and iced teas and wait... against a backdrop of computers humming, our electronic warriors lifting, and sifting, and churning data while we wait... and then the signal comes in, we check and double check, shift time frames, verify volume, compare our oscillators to the Tick, Trin, and back again. Sometimes we pull the trigger but most times we wait.
We fail to confirm on the Advance/Decline or the RSI or Woodies CCI and so we wait...
Sounds a bit strange, odd, possibly even mad, but we're traders and that's what traders do. Truth is, entering a trade takes no education, no degree, no experience, no Fibs, Fans, Arcs or Pitchforks. It's one of the simplest things in the world to do. We flex one finger and it's done. Turns out, not one trader in the history of trading ever made a dime entering a trade. The only way to make money on a trade is to exit. That's correct, it's the getting out that pays the bills, carves out a career and creates legends, not the getting in.
Now that we have our mind right let's talk about the truly important side of the equation - the exit. There are only three reasons to exit a trade:
