In Recent Post have been focusing my attention on a very inportant skill that will be the determining factor in deciding when to EXIT a position, Win Lose or Draw. In previous Post I covered the different STOP Loss techniques and clues to Close out trades that may not be performing as expected.
THIS post builds on some those concepts and concentrates on what i feel is a breakthru discovery for me regarding EXITS.
The Skill of Knowing when to EXIT, is very subtle and rarely spoken of in books, maybe becuase traders dont realize that they either posess or are blocking or ignoring this ability. The typical 2% STOP or x POINT Target is the common theme when discussing Exiting a postion. Very Few people speak of allowing the market to TELL YOU WHEN TO EXIT. And even fewer can offer ways in which to go about it.
EXITING skill is arguably more important than ENTRY skill and can tip the scales to consistent profits. Many people focus most of their attention to proper entry and assume that their target or stop will be there EXIT. As discussed in previous post, A stop will more than likely be your exit if its too close, if you trail the position or move to breakeven.
The Ah-hA moment of clearity was when I discovered that Continued Focus on bar progression is the Key. The more trust and confidence we have in what we understand about market action, the faster and easier it will be to ACT ON MARKET INFORMATION.
FOCUSING ON EACH AND EVERY BAR for tells and clues. This will help me to feel the pulse of the market.
Allowing EMOTIONS and NERVES to SPEAK to you - this means possibly doing the opposite or just letting them give you a feeling of the market pulse.
FEELING THE PULSE OF THE MARKET- means not only following every move but feeling the result of each move. This is what our focus aims to manifest.
ACTING ON WHAT THE MARKET IS TELLING YOU - This is the hard part and the most crucial aspect of trading, actually executing what we see and trusting in our knowledge and ability.
This skill is DISCRESSIONARY and is DEVELOPED with repetition and Focus. This is where my Focused intention should be directed at all times. Ironically trading often leads us to NOT trust our eyes, BUT trusting our eyes is critical to trading success once we have a solide Understanding of Price, Time and Volume.
Trust and Confidence - will eliminate Hesitation which can be the enemy of consistent profits.
Trust and Confidence - will eliminate Hesitation which can be the enemy of consistent profits.
Subtle Exit clues and tells
- For Strong Trends we see Vix, INDU and SPX.X consistently at Extremes early. Volume Profile Reacting and Bouncing off POC's.
- For Strong Trends we see Vix, INDU and SPX.X consistently at Extremes early. Volume Profile Reacting and Bouncing off POC's.
