- July 28, 2022
- Posted by: AliensFaith
- Category: OBJECTIVE PRESS
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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