One of the most common mistakes investors make is they don't have a plan to exit a trade, be it a loser or a winner. I see it all the time! Traders spend hours studying, analyzing and refining how to find the perfect entry but they spend little or no time thinking about when or how they should exit the trade. Many traders wait for an emotional response like, "I've got a bad feeling." Some are even afraid to admit their trade has gone wrong, putting their portfolio at great risk. A well-executed exit strategy not only ensures minimal risk and profit protection but most importantly, it builds confidence in a well-designed plan.

Join Barchart's John Rowand as he continues his discussion of "How to Build a Better Trade Plan." John will reinforce concepts like "all trades start with a stop" and "don't let a winner turn into a loser." John will also dive deeper into profit protection strategies like trailing stops and position scaling.