Most traders focus on trading signals to enter the market and the profits that can be made from those trades. Most traders are very sketchy in determining the exit point for a trading strategy such as stop loss and take profit point.

A lot of traders are eager to set profit-taking targets very far, regardless of the stop-loss count, and for the most part, these types of traders suffer huge losses. There are also traders who set a stop loss, but when the price moves closer, they fear and move the stop loss without any rules, which also causes them to lose a lot.

Most professional traders have their own entry and exit strategy in mind. They trade according to certain principles. And in a strong trending market, they keep their profits running until the trend ends, helping them to make a big profit.


One of the most common stop loss methods used by many traders including professional traders is cut loss as a percentage of your account per trade. And the number recommended by many successful traders is from 1% to 2% of your trading account. And with this level of risk traders should try to make a return of 2 or 3 times the risk you accept. Thus new traders can be able to make profits in the long term.

In volatile markets, you should stop loss faster and take profit faster as the speed of market change will be very fast. You should reduce your risk by only half compared to normal.
Professional trader Steve Burns has a very simple way out. He exits a trend-following strategy based on only one short-term indicator, the 5-day moving average (5-day EMA). When the price is in an uptrend and continuing to make a new high but if the trend loses momentum and the price closes below the 5 EMA. There is a high chance that the trend will start to change. As shown below:

After that, the price turned to the support level of 21 EMA and 50 SMA or 100 SMA with many times price bounced but could not continue the trend. This is the signal that they will exit the order before the market turns back, causing them to lose their newly earned profits. As shown below:

It can be seen that the exit method of a professional trader is not only not difficult to understand, but also quite simple. It is important for them to have consistent profits that they adhere to trading principles, including entry and exit points.