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Exit Timing
Interactive Quiz on Securing Profits, Reading Momentum & Knowing When to Close

Every trading plan ends with one decision: when do you lock in gains? Learn how structure reveals exit zones, how momentum signals fading strength, and why disciplined exits separate consistent traders from emotional ones.
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Exit Timing: How Traders Lock In Gains

A great entry means nothing without a great exit. The moment you close a trade determines how much of the move you actually keep. If you're still building your base, start with What Is Trading?.

Good exits come from understanding how orders move through the market. To learn how liquidity fills and why price snaps quickly, explore How Orders Work and the cost impact in Understanding the Spread.

Liquidity defines how clean or sloppy your exits are. Thin liquidity can slip your orders or create sharp reversals. For deeper insight, visit What Is Liquidity?.

Candle behavior signals when a move is weakening. Wicks, fading bodies, and exhaustion give powerful exit clues. To sharpen your read, explore Candlestick Anatomy.

Exits depend on structure, not emotion. Key levels show where trends pause, weaken, or reverse. Strengthen this skill with Support & Resistance.

Direction decides whether you should hold or get out early. To understand how trends extend or fail, explore Trends vs Ranges.

Volume reveals whether the move still has power behind it. Weakening volume often warns of exit zones. Learn this skill in Volume 101.

Some exits depend on distinguishing real breakouts from traps. To avoid surrendering gains to fake moves, study Breakouts vs Fakeouts.

Momentum shifts mark the end of many good trades. Weakening momentum is often the earliest exit signal. For this lens, explore Momentum Basics.

Psychology influences exits as much as structure. Fear locks traders into early exits; greed traps them in late ones. Build discipline with Psychological Trading Pressure.

Patterns reveal exhaustion, reversals, and continuation strength — all tied to exit logic. Improve this awareness with Common Chart Patterns.

Stop-loss placement ties directly into exit timing — protection is part of exiting well. To connect defensive logic with timing, explore Stop-Loss Placement.

Once you master exits, you can integrate them into a full trading process. For next steps in building a rule-based approach, explore Building a Trading System.

Frequently Asked Questions

Exit timing determines how much of a move you actually keep. A strong entry still fails without a thoughtful exit.
Fear of losing unrealized profit or impatience often pushes traders out long before the move is finished.
Structure targets, trend evaluation, momentum signals, and predefined rules dramatically improve timing.
Emotions cause premature exits or late exits — discipline and rules prevent both extremes.