Exit Strategy Explained

Dear reader Weiguo think EXIT more important than ENTRY. I think both ENTRY and EXIT are equally important, just like our left and right arms. Here I want to explained my EXIT strategy, since all along the way I've talked more on entry only. Thanks weiguo for bring this to my attention.

If you are a long-time reader of this blog, you probably already knew I'm a short term swing trader, my typical holding period is from two days to no more than two weeks. I'm talking about two sets of simple exit stratgies below:

1. Short term swing trading
a. Exit on next resistance ( often I use MA, Horizontal resistance, bearish reversal candle pattern, gap)

2. Longer time position trading(or trend trading)
a. Exit when trend change, simply use 20dma as a gauge, when it below 20dma, i'm looking for the immediate recent low, and place my exit point below the low. (this is for up trend, vice versa for downtrend)