Why should I take 50% profits off the table when the trade is going my way?
Posted by - NA - on 05 April 2018 11:32 AM

Trading is a very psychological game, and this is the approach that we have found that is the most consistent and reliable way of walking away with profits.

If you take half your position off, for a conservative early profit (P1) the rest is bonus, which can move to windfall profits.

It’s psychologically sound to reward yourself early for a good trade, while leaving something on the table for your windfall bonus.

If you don’t do that and the stock did something odd like gap against you, then your entire position would be at risk.

Also, by taking half off, you don’t have to have your stop ultra tight so you can let the other half go a bit, because you already have the security of knowing you’ve banked a profit.

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