Who this is for — Exits matter as much as entries. Documenting why you closed separates discipline from panic and greed.
The exit reason is the justification for closing a position: stop-loss hit, take-profit reached, setup invalidated, or emotional exit.
In plain terms — "I exited because…" — planned stop, planned target, or fear. Only the third category needs to be reduced over time.
Types of exit
| Type | Example | Assessment |
|---|---|---|
| Planned | Stop or target hit | Process OK |
| Management | Trailing, break-even (Silver) | Worth documenting |
| Emotional | "I couldn't take it anymore" | trading-mistake to analyze |
Example — Exit at +0.3R "because the chart was shaking." Exit reason: panic. Comparison with plan (+2R): process error, not bad luck. Next trade: reduce trade-size.
Card
- What it is: documented reason for closing a position.
- When to use it: immediately after every exit in the journal.
- Typical mistake: not distinguishing planned exit from fear-driven exit.
Bronze path — Module: First trading journal. Part of bronze-path.
Links
Module: Module 6 — First trading journal
Turn every trade into data.
