Scaling out of positions: best practice?

asked by u/justin_a · 19d · 2 answers

For those of you trading larger cap stocks, how do you manage scaling out of winning positions without leaving too much profit on the table if it keeps running, or getting chopped up if it reverses shortly after taking profit?

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Top answers

  • u/ahmed_k· 5 pts· 18d

    I generally scale out based on predefined price targets and support/resistance levels, taking partial profits to lock in gains while still allowing for further upside.

  • u/sabubakar· 0 pts· 19d

    Trailing stops are the usual method, but they're not perfect. You still have to decide on the right stop percentage, which is where most people struggle.

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