In the previous podcast episode with Larry Tentarelli, we opened up the opportunity to submit questions for Larry and received quite a few pages.
Surprisingly, a large portion of the questions were about exits.
Why are exits so hot?
I actually asked Larry why he thought exits were such a hot topic and he suggested that perhaps exits are an area that people really struggle with.
This got me thinking about exits more and I recalled an interesting point that Murray Ruggiero made back in episode 42.
I think Murray raised a really important concept which most traders may not even consider when they’re looking at exits and specifically how to choose the best type of exit for your strategy, which we’ll get to in just a sec.
How do you choose the right exit?
Larry was kind enough to share his philosophy behind exits but you may have noticed that he didn’t give exact details about them, which I think was intentional because it’s something that traders really need to figure out for themselves.
So then how do you go about choosing the best type of exits for a strategy?
Let’s take a listen to Murray answering a question from a listener about exits.