What is entry and exit ?

Entry and exit.

 Entry and exit in trading refer to the specific points where a trader opens and closes a trade.

🔽 Entry Point = When you buy or sell to start a trade

🔼 Exit Point = When you close the trade to take profit or cut losses

✅ Entry Point: When to Enter a Trade

  • Based on a trading signal from:

    • Technical indicators (e.g., MACD crossover, RSI oversold/overbought)

    • Chart patterns (e.g., breakout from resistance)

    • Candlestick patterns (e.g., bullish engulfing)

  • Should align with your trading strategy

  • Needs confirmation to avoid false signals

Example:
Buy when the price breaks above resistance with high volume.

✅ Exit Point: When to Close a Trade

  • Can be for profit (Take-Profit) or to limit losses (Stop-Loss)

  • Based on:

    • Price targets (support/resistance levels)

    • Technical indicators (e.g., RSI hitting overbought)

    • Risk-to-reward ratio (e.g., 1:2 or 1:3)

Example:
Sell when the stock reaches your price target or RSI goes over 70 (overbought).

🔁 Entry & Exit Work Together

Good traders plan both before entering:

  • “If this trade goes right, I’ll exit here (take profit).”

  • “If it goes wrong, I’ll exit here (stop loss).”

📌 Pro Tips:

  • Never enter a trade without a clear exit plan

  • Stick to your risk management rules

  • Emotionless exits (don’t let hope or fear trap you)

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