Hi guys :)
Wanted to start a discussion on the issue of partial profit taking. I sometimes apply this approach depending on how much of a potential I see in a trade and to secure that a position will not fall back into negative. However I often have doubts during the decision to take profits underway. For example when you take half profit at 2/3 of your target, then you actively choose to leave the other half of the position open 1/3 still to go and at least 2/3 to fall back - in essense the same as opening a position where your risk:reward is 2:1, something many traders would not normally do.
Would like to get some opinions on this, and maybe some links/video's? I think this is a very central aspect on trading, and one that could for some be easily ignored as aspects such as perfect entry can seem more logical to focus on. However this could be ultimately the one factor to keep a trader from breaking through...which should be enough reason as to why this must be a focus point
Wanted to start a discussion on the issue of partial profit taking. I sometimes apply this approach depending on how much of a potential I see in a trade and to secure that a position will not fall back into negative. However I often have doubts during the decision to take profits underway. For example when you take half profit at 2/3 of your target, then you actively choose to leave the other half of the position open 1/3 still to go and at least 2/3 to fall back - in essense the same as opening a position where your risk:reward is 2:1, something many traders would not normally do.
Would like to get some opinions on this, and maybe some links/video's? I think this is a very central aspect on trading, and one that could for some be easily ignored as aspects such as perfect entry can seem more logical to focus on. However this could be ultimately the one factor to keep a trader from breaking through...which should be enough reason as to why this must be a focus point
by supertramp via InformedTrades
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