I think this is one of the most important parts of trading - When should you exit a trade?
I think this separates the winning traders from the losing traders and I think this is the TRUE edge.
Let's take the famous story of the two traders who entered a trade at the same time. One trader came out with a profit and one trader came out with a loss. What was the difference between these two traders? The difference was their exit strategy.
Quite often, exit for most traders is dictated by emotional pressures of the trade. Sometimes I've experienced this - I've been looking at the trade so much it has sapped all of my mental, physical and emotional energy away from me, and then I just want to get out to give myself a break. Obviously, in that situation I'm not going to get out at the best point am I? Of course not! So that brings me to my main point number one on when to exit - and that is 'You have to have a clear head to exit in a consistently profitable manor.'
A Clear Head is IMPORTANT!
Don't bother trading seriously unless you have got your emotions in check. When you do start to trade I can't stress this enough, trade small amounts and become confident with REAL money before considering the Forex as a methodology of making real money. If you go into this game with the hope of making lots of money, without having any experience, I can assure you my friend, you'll get annihilated because of your emotions and poor judgement under extreme pressure.
That is my point one on how to exit properly.
Point 2 will be coming soon. Please feel free to add something yourself =) =D