Top Exit Strategies in Day Trading
Hello friends lets under stand exit set up in trading 1. Risk and Reward Ratio Strategy This strategy is the simplest exit strategy available for day traders. Also, even beginners can use this one for a successful exit from an intraday trading session. Simply put, this one is about picking the right risk and reward ratio that could be favorable and will help your trade to be a successful one. For instance, if the price of a stock is ₹10 and you expect it to rise to ₹15 but it doesn’t go above as per the trend line that you have mapped, you will need to place your stop-loss order at that point. So, for a stock price of ₹10, you can put a stop-loss at ₹9. Here, your risk to reward ratio would be 5:1. This means, for making ₹5, you will risk ₹1, which is not a very bad position to have. 2. Trailing Stop-Loss Strategy The trailing stop loss order is the second-best exit strategy for intraday traders. This strategy aims to balance the trading risks against the profits to minim