Tuesday, April 24, 2012

How to hold on to a trend trade and not exit early: Major support breaker signal

I've been really busy with things lately so I haven't had much time to commit to the site. I figured I would post today though since I decided to trade today and take a break from my other project.

Its important to know when to enter a trade, but its even more important to know when to exit a position. The major mistake of most traders is exit too early on their profits and staying in too long on their losses. I make it a point to cut losses quick and keep them small. I also try to hold a trade as long as possible, until its invalidated. Here is an example of a major support breaker entry signal with a max target at previous day low. If you look, I'm risk-free in the trade now, and have a very large target. This target will get adjusted if certain conditions occur, which are mentioned on the chart.


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