Taking Profits: Partial or Complete

Discussion in 'Trading' started by Sanjuro, Mar 15, 2004.

  1. Sanjuro


    There have been previous threads about this topic
    but I'm interested in knowing what percentage of ETs
    take Partial Profits at different levels and the others
    that get out completely at the profit target or trailing stop.
  2. fan27


    My goal is to be largest when I am right and smallest when I am wrong.
  3. Taking partial profits lowers your expectancy and decreases your risk vs. reward ratio (by reducing your profits). From a money management perspective partial profits are a bad idea but some people find that it helps them psychologically when they lock in some profit.
  4. If you're very disciplined one option is to "overbuy" (buy slightly more than you otherwise would). That way you can piece some off at lower prices if you start to question a stock's follow-through and still have a good position left to "ride." The keys here are being highly selective on your entry points and exiting most or all of your position without hesitation if it doesn't promptly go your way. Good luck, - Rob
  5. partial profits or scaleing out are good ideas, trading doesn't have to be all or nothing plays.

    base hits, not homeruns win the game.
  6. nothing worse than turning a winning trade into a losing one.

  7. Mecro


    In this market, take whatever you can. Partial profits are not a bad idea at all since at any moment, liquidity can dry up and next thing you know your winning trade turns into a losing one with 100 share upticks/downticks.

    Happened twice to me today.

    When it was good before the second week of Feb, I went the all or nothing strategy. Worked great when volume is strong and there is strong follow through.