Some traders believe that the exit is actually more important than the entry to a trade. One of the best traders I know says "you can give any position long or short, I'll manage the risk, have a specific exit strategy and the trade can be successful." He takes the approach that he does not know where a stock is moving, but he always knows what he is going to do to let profit run and manage risk.
I asked this trader for some exit strategies that he uses. He gave me the exits for long positions. A trader can reverse many of these for short positions. Here are some of his favorites.
Success in business, life or trading has one very important similarity. A Plan. A plan is essential for success. The top traders in the country all have this one similar trait and it is an absolute. I feel that this confuses new traders who are constantly being told about success in a specific type of trading method.
You may read a book about a method of trading that the author claims makes him money. The one common denomination that the successful traders I know have, is a plan. Let's look at some of the more recognized approaches to the markets.