When to Exit a Trade: Exit Plan for Every Trading Style!

Hello Traders!
Every trade type needs a different kind of exit plan — but most traders use one-size-fits-all. That’s why they either exit too soon or too late.
Today, I’ll break down how to plan your exits based on trade type and intention.

A smart exit plan fits the nature of the trade — not just your emotion in the moment.

Exit Plan for Swing Trades

• Target Based: Pre-decide 1:2 or 1:3 risk-reward levels.
  
  
• Trailing SL (Candle Based): Move SL below each higher low in uptrend.
  
  
• Exit on Structure Break: If price breaks key swing low, exit immediately.
  

Exit Plan for Positional Trades

• Weekly Chart View: Exit only if weekly trend changes or closes below trendline.
  
  
• Partial Booking: Book some profits at resistance zones, hold rest for trend continuation.
  
  
• News/Events SL: Avoid holding through uncertain events unless strategy-backed.
  

Exit Plan for Long-Term Trades (Investment Trades)

• Fundamental Exit: Exit only if company fundamentals weaken or story changes.
  
  
• Valuation-Based Exit: Exit when valuations are stretched beyond long-term average.
  
  
• Exit in Phases: Don’t exit fully — scale out in parts across 10-20% intervals.
  

Exit Plan for Breakout Trades

• Multi-Year Breakout: Hold till price holds above breakout zone on weekly chart.
  
  
• 2-Week Breakout: Use previous resistance as SL. Exit if it fails to sustain above it.
  
  
• Volume Confirmation: Exit if breakout happens on weak volume and fails to follow through.
  

Exit Plan for Options Trades

• Defined SL in Premium: Keep strict SL (e.g., ₹30 loss on ₹100 premium).
  
  
• Time-Based Exit: Exit if expected move doesn’t come by your time window.
  
  
• Theta Decay Watch: Exit early if holding beyond 2–3 days and premium drops without move.
  
  
• Momentum Exit: Trail SL tightly once premiums start shooting.
  

Rahul’s Tip
Don’t treat every trade the same. Swing, positional, long-term — each needs its own exit discipline.
Your plan should depend on chart timeframe, reason for entry, and trade type — not just emotions.

Conclusion
Your exit strategy should match your trade type, not just your mood.
Once you start using the right exit logic for the right trade, your results will become more consistent, more powerful, and way less stressful.

Thanks for reading!
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