How important is exit strategy to trading?

[RothsCoin]

Exit strategies are important in a trading plan but are often neglected by traders.

It makes sense because traders prefer analysis and consider it as the key factor in every single trade deal. However, it is not that simple. It is such a long way to go since you place an order until you exit. You will have to enjoy many different emotional moods and thoroughly analyse the exit plans such as:

+ Should you set a closer or further stop-loss to the striking point so that there is enough space for the prices to move, avoiding stop hunt?

+ Does the stop-loss follow your plan? (Should you trail your stop-loss order based on any indicators or candle?)

+ When should you trail your stop-loss order to the break-even point?

+ Should you place a fixed profit target or trail stop-loss to gain the best profit?

As a result, exit strategies are crucial factors that each trader should make for their own.

#Kingmobile

[BTCLovingDude]

the only reason why people don't pay enough attention to stop loss in altcoin market is the fact that there aren't really that many "traders" in this market but there are lots of "gamblers" who are fooling themselves thinking they are trading but in fact they are gambling!

on top of that when a market is mostly manipulation and less real, you can not speculate in such markets so you can not rely on conventional ways such as stop loss. price can drop 90% in a couple of hours before you can even begin to think about making a move! let alone make that move.

[JeffBrad12]

the only reason why people don't pay enough attention to stop loss in altcoin market is the fact that there aren't really that many "traders" in this market but there are lots of "gamblers" who are fooling themselves thinking they are trading but in fact they are gambling!

on top of that when a market is mostly manipulation and less real, you can not speculate in such markets so you can not rely on conventional ways such as stop loss. price can drop 90% in a couple of hours before you can even begin to think about making a move! let alone make that move.

Did you mean if trading = gambling? It looks a bit similar but i think that was different for so many reasons. Market it can be manipulated by anyone with a lot of money. Last week we know that with only a single dump by mtgox trustee and the whole things in the crypto were feeling panic and try to make the situation even worst. Looks like all about manipulation.

[Rahman11]

Yes your explained strategies good! yes every traders who wants to gaining profit there need to a fix target about trading when they will can make them happy about their profit.

[Javanewstar]

Yes, stop loss and stop profit are two important parts of the cryptocurrency market.
Most people will ignore this, and only good trading strategies can keep the profits going.

[vv181]

An excellent quality thread in the wrong section. You should post the thread in the trading discussions section instead of in the altcoin discussion section. I'm sure there will be a lot of interesting feedback if you post this in the proper section.

[Wilsonong222]

Exit strategies are important in a trading plan but are often neglected by traders.

It makes sense because traders prefer analysis and consider it as the key factor in every single trade deal. However, it is not that simple. It is such a long way to go since you place an order until you exit. You will have to enjoy many different emotional moods and thoroughly analyse the exit plans such as:

+ Should you set a closer or further stop-loss to the striking point so that there is enough space for the prices to move, avoiding stop hunt?

+ Does the stop-loss follow your plan? (Should you trail your stop-loss order based on any indicators or candle?)

+ When should you trail your stop-loss order to the break-even point?

+ Should you place a fixed profit target or trail stop-loss to gain the best profit?

As a result, exit strategies are crucial factors that each trader should make for their own.

#Kingmobile

Exit strategy is the most crucial part of trading. In this stage of trade you will experience two important decisions that will change your portfolio. The first one is continuous drop of account value. If you perform cut loss you have already accepted that you failed in that trade but if continued, you might further incur more losses. The second one is profit taking; if too early you might not get the breakout price if too late your gain might easily melt.

Exit strategy should be crafted carefully because it is equates to loss or profit of your trade.

[Andri73]

Strategy trading is very important, because everything is a risk and we must be able to minimize the risk.
And we must know when the right time to enter (entry) market, when to exit.
Without it, do not expect us to get the maximum benefit.