SPLIT EXIT METHOD
SPLIT EXIT METHOD
When you trade you don’t have to make a full exit each time you exit a
trade. If you trade multiple lots (regular or mini) then you can take advantage
of the “Split Exit Method” for advanced profit taking.
The “Split Exit Method” may be employed on just about type of trade. For
example, you can use it on Fibonacci to take limit at the short and long
extension targets, you can use it with “Netless Candles”, half as a Roulette
trade, and the other half to let it run, you can use it with a “Running Scalp”,
half to exit at the end of the day while letting the other one run for (hopefully)
many days, or with just about any trading strategy where you might want to
take a partial profit and let the other portion continue for potentially more
profits. forex sato forex-for-profit, and how to take advantage of the Forex..
Regarding risk-to-reward ratios, you can have one, for example exiting at a
limit for a 1:1 ratio, and the other trade going for say 1:2 or 1:3 (or
more). This way you can “have your cake & eat it too”, by taking a “safer”
profit while also allowing yourself to go for a riskier profit target.
You can even get more creative with this concept; you don’t have to do two
equal trades, you can do say three equal trades (exiting at three different
targets), or, for example, you can do two trades but one is larger than the other
(i.e. one for two lots and the second for one lot, or vice versa).
The benefit of a split exit is that by taking profit early on half of the trades
then usually you can let the other trade run for potentially more profits (trailed
appropriately). Doing so means that you (typically) will have zero continued
risk (on the continuing trade), and often have secured a profit (so even if the
other part bombs you’ve at least taken some profit) .forex sato forex-for-profit, and how to take advantage of the Forex...
The best way to set yourself up for a split exit method is to start off both
halves of the trade as separate trades from the start. Manage the stops &
limits of both trades separately, with the limit order of course being different
for each (or one has a limit & the other doesn’t).
If you didn’t have the foresight to create two separate trades from the
beginning then you can do some quick trade switcheroos to get you into such
a situation. The simplest way to do this is to set your limit order to exit the
full trade at the early target price, and to have an entry order set for the same
price (remember the pip spreads) but with fewer lots to initiate a new trade to
be the size you want for the second longer trade. There are other ways that a
switch can be accomplished, but this suggested method (starting a new trade
as the first exits) is the simplest...forex sato forex-for-profit, and how to take advantage of the Forex...
Play around with this concept with your trading to leverage yourself through a
“safer” trade into (partially) running for larger profits. Remember that once
you have a “free trade” (you’ve already secured profit no matter what) that
you don’t want to do anything stupid (it’s better to take profit then to risk it
unnecessarily), but intelligently letting the second half run (when you have
“reasons” that indicate that there are good possibilities) gives you the chance
to capture an occasional landslide profit ...forex sato forex-for-profit, and how to take advantage of the Forex...
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