When planning your exit strategy, which should be studied before you enter the trade,there are three components that determine your exit plan

1. Designate the time frame of your trade, you cannot start a trade as a scalp change to a day trade or swing trade in the middle.

2. determine your risk reward analysis and risk management strategy

a risk-reward ratio of at least 1;2 minimum is acceptable but should increase if the trade is held for longer periods of time like swing trades.

3. take profits gradually to lock in profits

when trading to the long side do not wait for the stock to show weakness to take profits, sell while the buying pressure is pushing the price higher.

4. have s stop loss feature

A stop-loss feature will let you exit your position as soon as the direction of the markets turns against you, minimizing the amount of losses.

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