Learn · Lesson 7
Planning exits.
Exit planning is the idea of deciding rules in advance, while calm, instead of while a chart is screaming at you. This page explains the idea; it is not a plan for you.
Ideas people use (education only)
- Staged plans Some people write down, in advance, the conditions under which they would reduce a position.
- Time rules Some people review on a schedule (monthly or quarterly), not every candle.
- Thesis rules If the reason you held no longer holds, that is information. Update the plan.
- Separate lanes Money you need soon is not the same lane as long-term holdings.
What this is not
This is not a signal to sell anything, and it is not trading advice. The point is to understand the term, alongside DCA and holding.
Put it together
People who use a written process usually decide their rules in advance, while calm. This page explains the idea; it is not a plan for you.