What is your exit strategy?

[theasxgorilla]

Trend lines are very useful. Very powerful.


motorway

I also use trendlines, accompanied by lower highs, lower lows, and in the case of a trailing stop I use what Van Tharp calls a "maximum adverse excursion". In otherwords a retracement. I base that amount on historic retracement specific to that share.

Motorway has a bit of the science on why trendlines are effective (powerful)...I just know they work.

 

[R0n1n]

I also use trendlines, accompanied by lower highs, lower lows, and in the case of a trailing stop I use what Van Tharp calls a "maximum adverse excursion". In otherwords a retracement. I base that amount on historic retracement specific to that share.

Motorway has a bit of the science on why trendlines are effective (powerful)...I just know they work.

true. I was on PBL, and on the 1st it broke the trendline I had drawn, so I jumped out... I am happy I did.

 

[tech/a]

nizar.
The stop is set from a bar or a bar within a pattern.
Exit is intraday if triggered.

 

[tech/a]

Although stopped out today MTN closed strongly today.
Could still be more in this.
Buy back for wave 3 of this final wave 5 if confirmed $6.26

 

[theasxgorilla]

true. I was on PBL, and on the 1st it broke the trendline I had drawn, so I jumped out... I am happy I did.

I also tend to use a zoom-out, zoom-in, zoom-out again, then zoom-in approach.

1. find shares to enter using weekly charts
2. zoom-in and enter using a daily chart
3. zoom-out again once trend is underway and monitor position using weekly chart)
4. zoom-in again when the trend shows signs of slowing and adjust trailing stops/exit on a daily.

 

[CanOz]

I also tend to use a zoom-out, zoom-in, zoom-out again, then zoom-in approach.

1. find shares to enter using weekly charts
2. zoom-in and enter using a daily chart
3. zoom-out again once trend is underway and monitor position using weekly chart)
4. zoom-in again when the trend shows signs of slowing and adjust trailing stops/exit on a daily.

Great post G'rilla...i like this so much i think i'll incorporate it into my training plan right away!

Good to see you posting more frequently again too.

Cheers,

 

[reece55]

Hey ASX Gorilla, couldn't of summed it up more eloquently than that mate.....

Pretty much exactly the way trade unless I have some other quantitative reason for establishing a trade - watch for a break out into a fresh range, enter on strength (perhaps waiting for a test of new support). Then, if the support line is broken, close out and cut losses quickly....

The one thing I note is to ensure that you set your stop just a little below the obvious support line - wiggle room. Nothing worse than being shaken out early of a position just before it takes off..........

Cheers
Reece

 

[R0n1n]

Reece, nice blog, way to go...

 

[R0n1n]

I sold all of my holding in QAN.. its broken my trend line and the last couple of days the selling pressure has been there.. and the overall volume has been declining...

 

[lukeaye]

Exit Strategies

Hi guys,

didnt find anything on here, so i dont think this has been done yet. Just thought it would be interesting to see what peoples exit strategies are.

I thought this might help alot of people out, as i remember i had real trouble with it. I spent years learning how to pick where a stock would go, when to enter it, and how to enter, basically everything i needed to know about how to get in to a profitable trade, along with many pie in the sky ideas about where it should go, but nobody ever told me how to get out! and in my opinion that is one of the most important parts.

To get the ball rolling i though id share one of mine. This is a conservative approach i take to exit any triangle formation i trade. Im basing this on a positive expectancy, im not talking about stop losses.

Obiovusly to understand an exit entry must also be known,

I wont give away my whole entry criteria, but i buy off support in triangles.

EXIT 1:
Assuming the stock rallies past horizontal/diagonal resistance, Half the position will be closed once the stock moves lower then the second last up days open.

Scenario 1: Stock continues to move down below old resistance, remainder of position closed.

Scenario 2: Stock finds support at at previous resistance, in more time, and at a lower ranged days, Process repeated. This time the whole position is closed.

This is a conservative exit. There are other higher risk strategies that i also use. The thing i like about this strategy though, is that i have no preconcevied notion as to what the price of the equity will go to. I find if you think xyz should go from 3.50 to 4.50 you will never be prepared to sell it at 4.00! by not putting values on my expectations i found it easier mentally to take the profit.

Of course i based this strategy on backtesting and looking at 100's of flag formations, and shaped it to suit the way i traded and what gave the best possible result for the highest probabilty of return. I am well aware that there may be better ones though.

 

[nomore4s]

lukeaye,

I have moved your post to this thread as it also discusses a number of different exit strategies from various posters.

 

[Chris45]

The likely extension to wave 5 is the first Turquoise and Pink Line and the second the Larger one. Thought it would be interesting to watch.

Don't know how many saw Advanced GET's wave 5 target for ZFX but the highest price reached was $21.60 on 9-Jul-07. That's amazing!

 

[kam75]

Just trying to find out what other people use as exit strategy ? I am still trying to get mine ironed out..
Do you use an indicator ? or a trailing stop loss. What persentage do u use ?

1. Stoploss
2. Profit target
3. time stop

 

[tech/a]

Don't know how many saw Advanced GET's wave 5 target for ZFX but the highest price reached was $21.60 on 9-Jul-07. That's amazing!

Smoke and mirrors.
I trade illusions.

 

[prozac]

Some very tech knowledge involved by some. Those who trade on tech pointers, do you really make good profits, consistently? That is a serious question btw.