Locking in profits

[mark8par]

Hi,

I am in the middle of putting my trading plan together but have a question.

I will give an example,

You have a trade running and just before you finish trading for the day (3pm) you see that your trade has nearly reached target. Would you move the sl to lock in profit so not to risk it but at the same time allowing for any reversal and not moving it too close or would you just let it run?

Or if you would do something different I would be interested to know.

Thanks

Mark

 

[leonardo]

Hi Mark,

This is really up to your risk profile and the answer can be different regarding each situation (eg: how much space? what about momentum? etc).
I can generally give you 3 alternatives:
1) close the position
2) scale out: close 50% and let the rest run moving SL to a logical place (swing, BE, Support etc)
3) trail stop

Hope it helps, feel free to go on asking about it.

Leonardo