Daily Beam Blog

The exit is definitely the tougher of the two positions when forex trading. There are several ways of going about this. You can just take a flat amount of pips every time. That way you don’t have to worry about figuring out where to exit. You can take a basic 1:1 risk:rate.  Get an idea of what your stop loss is going to be and setup an equal amount of pips for the exit position. If you want to try to figure out the exit position, you can take the next available price action in the opposite direction. So if you were long on a currency, you can take the exit at the next price action down pattern, which will be a natural resistance area. You also don’t have to be mechanical about this.  If you see the price slowing down in your direction, then you can take profit.  It doesn’t have to be an all or nothing kind of thing.