Trading Price 7: Exit Tactics

Question 1

what is a Fixed Exit

Answer 1

A fixed Exit or Target is a specific price you will exit the trade

Question 2

6 Types of Fixed Exits

Answer 2

1. Target 1 only at Supply or Deman Zones 2. scale out - have multiple targets 3. set & forget 4. Exit at a specific $ amount 5. Exit at a specific % amount 6. Exit at specific Reward to Ratio amount

Question 3

Fixed Exits 1. Target 1 only 1 benefits and 2 drawbacks

Answer 3

Just have 1 exit target. Benefit: will profit if hit target Drawbacks: - if only 1 target, then have to wait to get to target 1 to make profit -May be stopped out

Question 4

Fixed Exits 2. Scaling out 1 advantage 3 things ryan wakins does

Answer 4

Get out at Multiple Targets Advantage: - if have 2 or more, can get out at target 1 half way, and let the 2nd or more targets run to next targets. - break even is a high probability. *** what Ryan Watkins does - puts 1/2 of shares at 1st target at 1:1 with stop. then wlll let 2nd 1/2 of shares run and do a technical stop - if target 1 hits, but target two stops out, worst case scenario is break even - even though target 1 is met, will not move stop.

Question 5

Fixed Exits 3. Set and Forget 1 benefit

Answer 5

Set Trade up and don’t touch - people who use set and forget will often outperform those who sit in front of computer. not in front of computer to screw trade up.

Question 6

Fixed Exits 4. Exit at specific $ amount what type of trader uses

Answer 6

For Paycheck traders

Question 7

Fixed Exits 5. Exit at specific % amount what type of trader uses

Answer 7

For paycheck traders

Question 8

Fixed Exits 6. Exit at specific Reward to Ratio amount

Answer 8

2:1, 3:1, etc.

Question 9

what is Adaptive Exits and purpose

Answer 9

A trade that adapts to market conditions. The purpose of this is to let profits run as well as, use a more effective exits tactic as markets change.

Question 10

5 Types of Adaptive Exits

Answer 10

1. technical stop -watkins favorite #2 2. Moving Average 3. Trend lines 4. Ballistic - watkins favorite #1 5. ATR, $, % Trailing stop

Question 11

Adaptive Exits 1. Technical Stops 2 advantages 2 rules

Answer 11

advantages: consistent good profit potential Rules 1. after entry, put initial stop under nearest Demand/Supply 2. After a NEWHH/LL has been made, move stop undernewly formed HL/LH - HH is not made UNTIL price moves past previous HH. Then move STOP.

Question 12

Adaptive Exits 2. Moving Averages 1 disadvantage

Answer 12

• Exit when price CLOSES below MA, not when wick goes below Disadvantage: - may be out of trade faster than Technical stop

Question 13

Adaptive Exits 3. Trend lines

Answer 13

use trend lines as exit points

Question 14

Adaptive Exits 4. Ballistic 1 disadvantage 1 advantage 5 step process

Answer 14

disadvantage: does not happen as often advantage when it does, it is outstanding 1. want to see Several HL candles (minimum 3-5) 2. At least 1 must be an ERC 3. Track the last HL 4. Once price trades below the last HL, then exit position. 5. Do not wait for the close!

Question 15

Adaptive Exits 5. ATR, %$, Trailing stops

Answer 15

use trailing stops as exit points

Question 16

Combination Exits

Answer 16

1. Used Fixed exit for 1st half: 2. Use Adaptive Exit for 2nd Half example: 1.cover half before D/S Zone 2. cover 2nd half when goes past MA

Question 17

what time frame should you manage your trades on?

Answer 17

Intermediate timeframe

Question 18

Combo exit example

Answer 18

1. fixed target at demand zone 2. use technical stops until get to target or use 1 and 2 with different adaptive

Question 19

what exit tactic to use at all time highs?

Answer 19

technical stop

Question 20

3 considerations when planning exit

Answer 20

1. make sure you have a CLEAR and PLANNED target exits 2. make sure your target represents at least a 2:1 R 3. Exit BEFORE the competitive buying and selling begins (just before opposing supply and demand levels)

Question 21

exit tacticswhat to do at 1:1?in intra day, when book 50%?in swing, when book 50%?

Answer 21

1. at 1:1 make stop break even2. for intra day, book 50% at 2:13. for swing, book 50% at 3:1