We cant point out often enough the importance of exits. There have even been studies showing that there can be systems with random entries that are still viable with great exits and proper money management applied. Now we do not advocate such systems but merely mean to illustrate how important exits truly are in relationship to entries. Entries have enjoyed such a magnitude of attention only because they come first. A market speculator simply asks-When do I buy. Since this is a quite difficult question to answer and in most cases takes years to find a satisfactory answer for, exits live in the dark. They come second. Our recent partial profit taking exit on our monthly silver holding is a good example to explain a simplified exit principle. Both entry and exits were posted live in our telegram channel. Exits over entries – where profits truly come from.
Daily chart, exits over entries, silver/US Dollar 9/3/2019, “grab it while you can”:
Silver in US-Dollar, daily chart as of Sep 3rd, 2019
On September 3rd 2019 we aggressively took a partial profit with our quad exit strategy. An unusually extended bullish candle was the first warning signal of a possible temporary top. Weekly charts were suggesting for more room to the upside slightly above the twenty dollar mark.
But we got out-why? Neither precision nor greed are good companions in the market arena. Selling into bullish liquidity for good fills and taking the opposite side of the masses is good advise. If ones system requires to hold on for dear life to maximize profits it needs an overhaul.
Generosity is a virtue and it is as such also in trading. Instead of a feeling of “fear of missing out” rather holding a picture in ones mind of “leaving money on the table for others” is the appropriate mental attitude.
Exits over entries, silver, daily chart, 9/4/2019, prices climbing up:
Silver in US-Dollar, daily chart as of Sep 4th, 2019
On the following day one might have thought, that taking profits on the 3rd of September, was premature. The bulls are still in control. Trying to pick tops so, is a fools game. Always ask the question:” How much do I need to risk for further price advances, more profits?”
Already the next day was a rude awakening for those who prefer confirmed exits over targets, “top pickers”, precision traders and anybody else who was “hoping for more”:
Daily chart, silver in US Dollar – September 5 2019, “what goes up, must come down”:
Silver in US-Dollar, daily chart as of Sep 5th, 2019
From a risk standpoint one would have needed to risk more than twice as much capital than what was able to gain in this last move. A bet we are simply not willing to take. This in addition to a very low hit rate for these final continuation blow of tops to even mature.
Take your profits while you can do so with ease.
Exits over entries, daily chart, silver in US Dollar – September 6 2019, “you can always go back in”:
Silver in US-Dollar, daily chart as of Sep 6th, 2019
On the 6th of September the bearish picture is confirmed. Why take these kind of risks. A close to 6% move against ones position in 2 days should be used to reevaluate upcoming entries. This with money freed, by exiting at proper, conservative targets.
To be able to follow such instructions one always needs to keep in mind the larger picture. The higher the time frame of ones market participation, the more difficult it is to not get entangled in a behavior guided by emotions that are not principle based.
In our case this specific exit provided a return of over 30%. This within capital exposure of 4 months. A high enough return to put some profits in the bank.
Any exit strategy that allows for partial profit taking puts the struggle for the investor, to pick the perfect exit, at ease.
Join our free Telegram Group :https://t.me/joinchat/HGe22hDDEEl0LvFGAgEZ9g
All published information represents the opinion and analysis of Mr Korbinian Koller & his partners, based on data available to him, at the time of writing. Mr. Koller’s opinions are his own and are not a recommendation or an offer to buy or sell securities. Mr. Koller is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations. As trading and investing in any financial markets may involve serious risk of loss, Mr. Koller recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.
Although a qualified and experienced stock market analyst, Korbinian Koller is not a Registered Securities Advisor. Therefore Mr. Koller’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Past results are not necessarily indicative of future results. The passing on and reproduction of this report, analysis or information within the membership area is only legal with a written permission of the author.
RISK DISCLAIMER: All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved and if necessary seek independent advice.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. Don't trade with money you can't afford to lose.
NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Do not invest money you cannot afford to lose.
EARNINGS DISCLAIMER: EVERY EFFORT HAS BEEN MADE TO ACCURATELY REPRESENT THIS PRODUCT AND ITS POTENTIAL. THERE IS NO GUARANTEE THAT YOU WILL EARN ANY MONEY USING THE TECHNIQUES, IDEAS OR PRODUCTS PRESENTED. EXAMPLES PRESENTED ARE NOT TO BE INTERPRETED AS A PROMISE OR GUARANTEE OF EARNINGS.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All information presented or any product purchased from this website is for educational and research purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. This presentation is neither a solicitation nor an offer to Buy/Sell options, futures stocks or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Please use common sense. Get the advice of a competent financial advisor before investing your money in any financial instrument.