Exit Point

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Dictionary Says

Definition of 'Exit Point'

The price at which an investor sells an investment. The exit point is usually decided as part of a premeditated trading strategy meant to mitigate investment risk and take the emotion out of trade decisions. Exit strategies are used by virtually all finance professionals and are a key component to successful trades.
Investopedia Says

Investopedia explains 'Exit Point'

For example, an investor decides to buy 100 shares of XYZ stock at $33. Before purchasing the shares, he decides that he will sell if the price drops to $30 a share. This way, he knows in advance that his maximum loss, or his risk, will be limited to $300, or a 9% loss. The investor would also choose an exit point for an increase in the stock's price, say, $40. Deciding in advance can help save an investor from holding on too long in either direction. On the other hand, many investors consider it a bad practice to sell if a company's fundamental situation hasn't weakened. 

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'Exit Point'

  • A Look At Exit Strategies

    http://www.investopedia.com/articles/trading/04/092904.asp
    ... Setting a point at which you will sell takes the emotion out of trading. The
    exit point itself should be set at a critical price level. ...

  • Profit Without Predicting The Market

    http://www.investopedia.com/articles/trading/10/profit-without-predicting.asp
    ... up. However, they still should have an exit point in case prices are no
    longer in an upward trend on their time frame. Short-term ...

  • Patience Is A Trader's Virtue

    http://www.investopedia.com/articles/pf/07/patient_investor.asp
    ... and falls below your original entry point, but fails to hit your trailing stop.
    You panic and sell, generating a small loss. Just after you exit the trade, the ...

  • Trade On Support For The Best Exit Strategy

    http://www.investopedia.com/articles/trading/03/082003.asp
    ... resistance. Conclusion Support and resistance ranges are key concepts that
    will sharply refine your exit decisions to a fine point. At ...

  • How To Become A Successful Forex Trader

    http://www.investopedia.com/articles/forex/05/060205.asp
    ... We also see that a Fibonacci support provides a nice exit point. ... Again, we see a
    Fibonacci resistance level that provides an excellent exit point. ...

  • Point And Figure Charting Basics

    http://www.investopedia.com/articles/technical/03/081303.asp
    ... long-term investment, point and figure (P&F) charts have been described as one of
    the simplest systems for better determining solid entry and exit points in ...

  • FX Exit Strategies: Keeping Your Profits

    http://www.investopedia.com/articles/forex/11/forex-exit-strategies.asp
    ... Stop-Loss A stop-loss order is a very common way to control risk and exit a position
    if it reaches a point where we are unwilling to absorb further losses. ...

  • How Do Limit Orders Work?

    http://www.investopedia.com/video/play/how-do-limit-orders-work
    Videos /. How Do Limit Orders Work? Next video: Understanding Book Value. Picking
    entry and exit points can be a big challenge for investors. ...

  • A Trader's Guide To Using Fractals

    http://www.investopedia.com/articles/trading/06/Fractals.asp
    ... place. Notice, for example, that the latest fractal had a drawdown of over
    100 pips and still has not hit an exit point. However ...

  • Spot Hotshot Penny Stocks

    http://www.investopedia.com/articles/stocks/07/spot_pennystocks.asp
    ... always use a stop loss. A 5% break of a major trendline or rounding bottom
    pattern is a good exit point. While there are never any ...

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