The one of the best ways to beat stock trading risk is to plan your exit.

Planning Your Exit

Is is very important to strip out the emotion from trading and therefore wise traders will plan their exit position long before they even open a trade. It is all too easy to get seduced by a winning trade and try and ride it all the way to the top. Conversely, people will hang on to losing trades for far too long in the hope that they will bounce back.

Make a plan and stick to it, if you have made a mistake, admit to it and exit early.

Stick To Your Chosen Signals

Even when you have made your plan you may be tempted to enter or exit a trade as it approaches your chosen signal. Be patient and wait until it does otherwise you are anticipating the trade and may as well be trading on a whim.

Dave J

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