How do you decide to get out of a profitable trade that is now looking potentially bad?

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When do you decide that the potential pullback is enough to take profit now instead of just waiting for the take profit? Say it spikes, and is clearly going to return, why not take profit now?

Say you place a 1:1 RRR 200 pip position, & the chart goes 150 pips in your direction. Say then a new pattern forms that suggest a potential downside of 110-120 pips leaving you with 30 pips. From there it could go either way, losing all your profits or maybe reversing to your tp.

Theres a few options from here each with their faults i think.

Close with that partial win? – With that mindset, would you have gotten to 150 pips profit in the first place?

SL to break even? You’ve just potentially lost 150 pips. Its the equivalent of closing the position, & reopenning it with the SL at breakeven. – you wouldn’t have placed that trade (because of the new opposing pattern forming) – so why are you now?

Ultimately, I’ve come to the conclusion that pulling out and then re-entering at a better price is the better way forward. But of course what if you’re wrong?

How do you deal with all these potential situations? is it a case-by-case thing? or do you just set a tp and leave it?

submitted by /u/quantumwoooo
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Author: AliensFaith
HighTech FinTech researcher, university lecturer & Scholar. He is studying his second doctoral degree at the Hague International University. Studying different fields of Sciences gave him a broad understanding of various aspects of life. His recent researches covered AI, Machine-learning & Automation concepts. The Information Technology Skills & Knowledge gave his company a higher position over other regional high-tech consultancy services. The other qualities and activities which can describe him are a Hobbyist Programmer, Achiever, Strategic Thinker, Futuristic person, and Frequent Traveler.

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