The 7-part exit-planning process
Exit objective
Write the purpose of the exit plan: protect against invalidation, realize a planned target, reduce exposure, or close when the original premise is no longer valid.
Hard invalidation
Define the price or market condition that proves the original idea wrong. This is the risk boundary, not a level to widen after entry.
Target logic
Document why a target exists: structure, measured objective, opposing area, or a pre-defined reward-to-risk rule. Avoid targets chosen only by desired profit.
Partial-exit rule
If partial exits are part of the plan, specify the condition and percentage before entry. If they are not, write that down too.
Stop-movement rule
Define whether and when the stop may move. Do not move it simply because normal price movement feels uncomfortable.
Risk-reduction rule
State what evidence allows exposure to be reduced and what evidence requires a full exit. Keep the rule connected to the trade premise.
Post-trade review
Save the planned exit, actual exit, chart screenshot, reason for any deviation, and one rule to retain or improve.