Trading Skill#5: Use Realistic Price Target

Question 1

Taking Profits

Answer 1

-Taking profits is a skill that is often neglected, most trades can be profitable given the right price target.

• Finding a realistic target based on price action is critical
• There are 3 broad categories of target techniques:
  1. Support/Resistance ( exit long trade at resistance cover short @ spt)
  2. Target predictions based on price formation
  3. Placing targets with some measure of volatility (ATR)
• Profits do not take care of themselves. You have to grab them
• There is no prescribed correct way to take profits. The key is to adopt methods that suit your trading plan