Now that I have planned to take profit, do I need to close my position?
The risk-reward ratio planning mentioned before before entering the market
If the take-profit level is reached, do I need to close all positions?
There is no certain answer to this. It should be said that we need to develop consistent behaviors.
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Fixed trading behavior
If you are used to exiting the market at the originally planned take profit,
Then you will have to do this profit stop mode from now on.
Otherwise, the rules of trading will be disrupted.
Let me give you three ways to take profits for your reference:
•Fixed Take Profit – Difficulty 🌟
According to the risk-reward ratio plan originally set
Close the position directly when it reaches the take-profit target level
Do not actively intervene in any operations in the middle
After setting, let the market decide the result.
•Partial Take Profit - Difficulty 🌟🌟
After reaching the take-profit level, part of the position is sold out and the rest is released.
You can choose to close the position first and then take profits by 70% to 80%
If there are 2-3 seconds left, set the stop loss to protect your capital and not lose money.
•Trailing Stop - Difficulty 🌟🌟🌟
Suppose my profit target is reached and the floating profit is $100
Then I will move the stop loss to at least make $50
If the floating profit reaches 200 US dollars
Then continue moving until you earn at least XX dollars
In fact, how to set trailing stop loss depends on the individual.
The least you can accept is how much you earn
Prices must fluctuate
If the stop loss is moved too fast, the position can easily be liquidated.
Therefore, it is recommended that you start with simple ones first.
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A brief summary at the end
There should be no pattern in the bull market. We don’t know how high it will rise.
No one knows where the final profit will be.
If you feel that you have made enough money, close the position
If you think it will fall back and you will make less money, then you should also close the position.
The final problems we have to face are all mental issues
Do you have the means to hold a position for such a long time?
Can you withstand the price fluctuations in the middle?
If you can do it all, then leave the question of how much you earn to the market.
