A good exit from an investment position is more critical and difficult to achieve than a good entry. The difference is that while an investor is waiting for a good opportunity to invest or to make a trade, there is no market risk. If one opportunity to enter is missed, a good investor or trader knows another will come along. When a position is entered, though, exposure to market risk starts instantly.

Indeed, failing to exit an investment position at the appropriate moment can cost dearly. That cost can occur through slow attrition as the investor waits for the investment's price to turn around, or it can occur if the investor is too cautious and exits at the drop of the proverbial hat.

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