Have you ever noticed the one thing about all the information you find out there these days about trading, you know – the various setups, strategies and systems.
Well, they all seem to put a lot of focus on the actual ‘Entry’ and nobody seems to talk much about the other part of that equation – Which is the ‘Exit’ right?
Don’t believe me… take a moment and go to Amazon and do a search for forex books and then glance over the titles and you will soon see what I mean.
There’s nothing particularly wrong about this obsession with entries, most manual traders have this same obsession – “when is the best time to enter a trade?” – and on top of that they are constantly staring at screens waiting for that entry point just so they can click Go, but is does become detrimental when we focus most if not all of our energies there without spending much time paying attention to our exits.
I think one of the reasons for this has to do with our wanting to control things. We are in complete control prior to a trade, we can execute or pass on a trade setup – we feel empowered and in control of things.
But on the flip side once we are in the trade then we begin to lose a bit of control. All the sudden it’s the market that has a grasp over us and we fall victim to the emotion riding with every tick. Order turns into disorder – at least in your mind. We are now at the whim of the market.
Is this striking a chord with you yet?
Well you are not alone, as humans we subconsciously do everything in our power to block out things that are uncomfortable. We just try to ignore the painful stuff and uncertainty is the painful reality of the marketplace. We would rather just concentrate our effort on getting into a trade (something we feel we can control) and spend much less time worrying about how we will be getting out of a trade – something we feel is controlled more by the market.
What’s the solution?
I’m glad you asked. Control your strategy with both entries and exits all planned out.
You know that’s one of the reasons we developed Tekton. It’s just as easy to create an exit algorithm as it is an entry algorithm – Eliminating uncertainty and pain.
The best thing to conquer fear is to face it head on – and with the right tools.