In the investment world, a planned entry is only half the job done. A proper exit strategy is what will transition you to a long-term professional trader.
In investing, the exit strategy is as important as the entry point. Traders/investors spend a lot of time researching at the time of entry. However, many of them falter by not planning the exit. The right exit can spell the difference between a profitable and a loss-making trade or investment. This article will focus on how to plan an exit strategy for your stock market trades/investments effectively.
Important parameters for an exit strategy
Before we talk about the exit strategy that you can follow, let us first look at some of the important parameters that you should consider for your exit strategy.
a) Set a suitable investment time horizon
If you are an intraday trader, you need to close all your open trades on the same day. So, you need to frame your exit strategy accordin...