Struggle taking profits

Yes, we have all heard "let your profits run" BUT I just do not exit. Then I see my trades go to Zero profit and I am out with nothing. The only solution I have come up with is Limit sell orders. The hard part is where to set that profit order. By doing this I let the computer do the work for me.

Anyone else struggle to exit? What solutions have you come up with?

 

There are numerous of things you could do.

You could base your take profit on where your stop is, for example if you risk $500 then set your target at $500 if you like 1:1 risk-reward, $1000 if you like 1:2 risk-reward, ...

You could use a moving average to trail your stop below, so you keep trailing once you go in profit and get out once price goes below the MA.

You could use an anchored VWAP from the low candle to trail your stop below or above, so you keep trailing once you go in profit and get out once price goes below the anchored VWAP.

You could look for earlier zones of support/resistance and place your target just below or above those.

You could close trades partially at certain risk-reward zones, first part at 1:1, second at 1:2, ...

...

 

the risk/reward thing makes alot of sense..... let's ay I am willing to lose 30% then set a limit sell at 60% profit.... the key for me is to let the computer do the work

 

This has happened to me too many times than I count, they say let the gains run and I have only to look back and say yepp I should have taken profits. This month alone it has happened more times than I can count.

I had some very nice gains even In my retirement account on funds I had just bought this year, waa up over 10% just recently as of last week, by the end of this week that fund will probably be back to where I started buying it 6 months ago. 6 months of gains lost in about 2 to 3 weeks.....

 

The R/R thing is something to glom on to until it fails. What happens when the (60%) limit sell makes it to 53% and reverses? Where is your exit then?

For the most part, R/R as you've described is very similar to picking bottoms and tops. And we know how that works for the masses.

 

I feel your pain... this is a mental issue. We think the gain will increase. I really do not need to know why I do this... All I need to know is this is a BIG issue for me... now to find the solution.

 

I bought an etf around April. Bought around 46, it jumped to 67 in July, today its right back to where i bought, a full circle, the momentum of this etf was gangbusters, literally moving up to the point where you would think, heck this thing is never going down. Oops dropped like rock losing over 30% in about 3 weeks time. ...

 

I don't understand if you don't have an exit point how can you possibly have an entry point?

You need to know statistically where price can reach before entering, and then exit accordingly. Setting profit targets willy nilly at 10% etc is for amateurs.

You exit when you have reached maximum expected profits NOT at some arbitrary level.

 

Try trailing stops.

 

There are many ways to make 10 points:

1. Straight up 10 points (hardest)
2. 5 + 5 = 10
3. 4 + 4 + 2 = 10
4. 3 + 3 + 3 + 1 = 10
5. 2 + 2 + 2 + 2 + 2 = 10 (likely the easiest)

Sometimes, it's a lot easier to go for singles than homeruns.