CHAPTER 11
Exiting the Trade
There's a trick to the Graceful Exit. It begins with the vision to recognize when a job, a life stage, a relationship is over—and to let go. It means leaving what's over without denying its value.
—Ellen Goodman
There are six stages for every trade you take. The first stage is the analysis: You take a look at the charts and decide whether a trade should be taken. The second stage is the planning stage: You decide if you will take a trade, and now is the time to develop a trading plan. You will place your order to enter this trade at a certain price, and you will place your exit for the trade at a certain price, whether it be at a loss or gain. The third stage of every trade involves the entry: the price at which you begin your journey on the trade. This price may have been predetermined; you may have decided that you will enter the trade if the market goes to a certain price, or perhaps you just use a market order and enter the trade immediately at the current market price. The fourth stage involves managing the trade, this is where Market Biofeedback™ comes in, and you are anticipating and reacting to the market data that comes back to you via the chart while you are holding your trade. The fifth stage is the exit. This is the most important stage of the trade. You make your money when you make your exit and your paycheck is received. The sixth and final stage is a learning phase. This is where you examine your trade from beginning to end and give ...
