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Do You Have an Exit Plan?

Chart of TSLA

Let’s be honest, taking profits can be one of the hardest things to do in trading.

There you are – your trades are making money and the thought of selling paralyzes you. Do you let them run or do you capture profit? If you sell, will you miss out on a move higher?

Look at Tesla Inc. (TSLA). Tesla’s shares rocketed to a record price of $968.99, making massive moves over two trading sessions. TSLA jumped more than +264% since MarketClub members received a new entry signal on October 24, 2019, at $266.07.

TSLA is a prime example of why a trading plan with an exit strategy is so important.

Yesterday, a flurry of selling activity caused the stock to drop $103/share (12.6%). While this drop may have made some traders sweat, those with a trading plan may have used this dip as an opportunity to capture profits.

Your trading plan will allow you to get in and out of portfolio positions in a non-emotional way. You avoid decisions based on emotions, rumors, and sharp moves like what we saw for TLSA on February 5, 2020.

By creating a trading plan, you are setting yourself up emotionally to handle anything that happens in the market.

Creating a trading plan is very easy and you can do it in a matter of minutes.

5 Steps to Create Your Trading Plan

Here are the 5 Key Steps:

STEP 1: Write down your reasons for buying or selling a particular market.
STEP 2: Write down your entry points for the market you’re about to trade.
STEP 3: Write down when you are going to exit this market. This can be with a stop or when a market reaches a predetermined target zone.
STEP 4: Do not make market decisions during trading hours.
STEP 5: Review your trading plan every day to see whether things are going according to what you expect. This allows you to adjust your money management stops and your target zones in a non-emotional way.

Download our free trading plan template to get you going.

Free Trading Plan Template

While MarketClub can help you find winning moves, always plan to capture profits based on your own trading needs.

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U.S. Government Required Disclaimer—Commodity Futures Trading Commission
Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41—HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher or INO.com. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using the MarketClub™ methodology or system will generate profits or ensure freedom from losses. The testimonials and examples used herein are exceptional results, which do not apply to the average member, and are not intended to represent or guarantee that anyone will achieve the same or similar results. Each individual's success depends on his or her background, dedication, desire, and motivation.

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