You are holding your position and then, at a certain point, you decide to close it.
Deciding to close is very different from deciding to open. In the latter case you are starving, you want to chase. In the former case you have a background of days collecting gains, often a sparkling kind of magic that gets you nut.
You will soon decide that you need an exit strategy. Not an easy task: it involves many different approaches. There is a practical consideration that induce you to close when a nice profit is there to be capitalized. Another approach can use an indicator to trigger certain market conditions and then enter in closing mode. Some sophisticated technical analysis indicator can track volatility and help you close better. But you are looking for market extremes, innit? Identifying the market extremes is the final object of every system. Find it and money will completely lose value for you.
Whatever the strategy you are adopting, here comes the time to trigger the order and input the execution. Same as the Buy procedure, you press the Sell button instead, if you are holding a long position. You may decide to sell all-in, in one single execution, or dilute in different orders. In this case, just reverse the Buy strategy. Same effect: just a few seconds and what remains is just the adrenaline and a deaf monitor. As for the Buy operation, conduce the Sell procedure with care, attention and double check any step. Archive the data and you’ve done. Always evaluate the psychological effect of your actions and search for confidence in your trading platform.
When you are out, you are out. You will often be tempted to reenter the position as new (potential) gains appears. You must resist the temptation, almost always. Market is continuously wavy and a new open position trigger will soon appear. Also, I guarantee, having a relax time between position is positive.
coming: Finance for newbies: noise