Scaling out of positions: best practices?

Question

I've been working on my exit strategy lately, particularly around scaling out of winning positions. My current approach feels a bit arbitrary, sometimes I take half, sometimes a third, without a clear rule. For those of you who scale out regularly, do you have a specific framework or set of conditions you use? Any insights would be appreciated.

hassan.pillai · Accepted Answer

I generally start taking profits when the position has hit a key resistance level or reached a predefined profit target that aligns with my initial risk/reward setup. I'll typically scale out a third there and then another third if it continues to rally significantly beyond that, leaving a runner.

Scaling out of positions: best practices?

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