I’ve been thinking a lot about writing this article and it was triggered by a conversation with a friend. So how do you close your trades and make the most from the markets.

Have a Trading Plan

The worst thing you can do is not have a plan. Watch as a stock, crypto or forex trade fly up into the air then falls down, at which point you don’t know whether to close now or wait to see if it goes higher. This is a terrible way to trade and is an emotional rollercoaster as I posted before. Be cold with this. Here are some trading plans I like.

Basket Trading

Instead of trading your portfolio as individual devices. Set a target in $ or % for your portfolio. When you hit that target close everything. Let’s say I’ve invested £300 in 6 devices, £50 in each (this works for bigger amounts as well obviously). I’ve decided that when my portfolio reaches £400 I’m going to close my basket. At that point, having made £100 (a nice 133 per cent profit) I close everything, winners and losers and go flat. Have nothing on.

Level Trading

If you have a small amount to invest one way is to invest your £300 in 6 devices and when each one gets to a certain percentage profit, close the trade and take profit, re-investing the profit in a new device, thus building up your overall balance.

Target Trading

This is where you set a Take Profit target based on a chart, for example:-

In this chart for MKND Mankind, I’m looking to enter on a bounce of the upward trend line, then with a target of $6 per share.

This is the same chart showing the entry point coming. I’m actually buying tomorrow (Monday), looking to take profit at the $6 target — so I’ll set my take profit to $6 and leave it alone.

The trade will automatically close when it reaches that price.

Trailing stops

The trailing stop is a way of setting a stop loss that follows the price behind, lets say I bought in at $5 for a share. The stock moves up to $6, at that point I set my trailing stop to $5, as the stock moves up $7, my stop is then moved to $6, $8 my stop is moved to $7, if there is a sudden reversal I will stop out in profit.

• Make sure you don’t set your trailing stop until you have enough profit
• Make sure you leave enough room for the trade to bounce up and down. You can use 2*ATR to work this out — so for instance if the pair normally travels $.50 in one day, you could set your stop $1 behind the price. ATR stands for Average True Range and it’s an indicator you can use on the daily chart.

I’ll add to this page as time goes on so it’s worth bookmarking this for future reference.

NEVER USE LEVERAGE unless you are a very experienced trader. Then you can just hold the devices till they become profitable.

https://www.ukbitcoinblog.com/general-info/managing-your-portfolio-when-to-close-your-trades/