Wednesday, December 17, 2008

When to EXIT a Trade?

The best time to exit a trade is when the price crosses back down through all 3 EMA’s on the chart. Notice in the above example that the Dark Blue line—the actual price of USD/CHF on the 20th crossed back down all three indicators where I circled EXIT. If you held this position all week, you could have made a 275 pip profit.

With 1 lot traded on a standard account this would have been approximately $1780.00 in profits. With 2 lots--$3560! A mini account would have profited you $178 and $356 respectively.
If you profited 275 pips with EUR/USD or GBP/USD you would have made approximately $10 per pip, which you would have made $2750 with one lot and $5500 with 2 lots traded. Not bad for one week!

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