The Exit Rule That Most Traders Skip Until It’s Too Late

Let’s not sugarcoat it:

Most retail traders obsess over entries…
But they completely wing their exits.

They enter with excitement.
They exit with emotion.

They get the setup right.
Then give it all back because they had no idea when to sell.

I’ve been there.

Years ago, I had a clean ETH swing off the 0.618 retracement. RSI divergence was clear. Stoch RSI had just curled from oversold. Everything aligned.
Entry was solid. The trend was clean. But I had no system for taking profit.

I sold 15% too early.

Watched it pump another 40%.

Jumped back in late.

Got stopped out on the retrace.

Round-tripped my gains into breakeven.

All because I didn’t have clarity before the trade began.

That’s the lesson: exit planning is not optional.

Not if you're trading swing spot. Not if you work a job. Not if your capital matters.

Here’s the model I use now - the one that removed 90% of the second-guessing and locked in profits consistently.

It’s built for clarity. Not hope.

1. TP1: The Confirmation Exit

What it is:
Your first target should always be the previous swing high or a clear resistance level. This is the first logical place where price could stall.

How I handle it:
I take 25 to 40 percent of the position here.
Immediately move my stop to breakeven.

This locks in gains.
Removes downside.
Kills the anxiety of “what if it retraces?”

TP1 isn’t about max profit - it’s about clarity and capital protection.

2. TP2: The Extension Exit

What it is:
Once the trend is confirmed, I project from swing low to swing high and mark the 1.618 or 2.0 Fibonacci extension levels.

How I handle it:
This is where I exit another 40 to 50 percent of the position.

This leg is the real meat of the trade.
It’s where you capture the full wave - not just the bounce.

If price hits this level with strength, I don’t rush the last exit.
If it stalls or the narrative starts fading, I rotate into something stronger.

3. TP3: The Optional Trail

What it is:
If the coin still has momentum - either via narrative strength or market structure - I leave 10 to 20 percent running.

How I handle it:
I trail this portion using daily swing lows or a volume-backed support level.

But here’s the key: I treat this last part as optional.

If ETH/BTC starts rolling over…

If BTC.D flips up sharply…

If volume dies out…

I take the rest off. No hesitation.

This last TP is not about riding forever.
It’s about maximizing structure-based edge, not emotion.

Why this matters more when you work a 9-5

You’re not glued to charts.

You don’t have the luxury of micromanaging exits.

So your entire swing plan must be built on pre-defined clarity.

That’s why I set my alerts before I enter.
Not just for stop losses, but for each take-profit level.

This way, I check once or twice a day, not every hour.
If price hits a TP, I take action. If not, I go back to work.

That’s the whole point of this system.

Not to trade more - to trade cleaner.

A few rules I never break

• Never move TP levels once the trade is live.

• Always move stop to breakeven once TP1 hits.

• Never exit just because “it feels top-ish” - only when structure shifts.

• Always rotate into strength, never marry lagging bags.

• Never round-trip a green trade into red.

My take

Exit strategy is where most swing traders silently fail.

They plan the entry like a sniper…
Then exit like a tourist.

If you want to trade with size, protect capital, and let winners run - your exits must be intentional.

That starts before the trade.
Before the confirmation candle.
Before your alert goes off.

You don’t need to guess tops.

You just need to take profit like a pro.

If you’re ready to close that gap - the full framework is live inside the Vault.

www.whop.com/digitalvault1

-Victor