Scaling out of positions: best practice?

Question

Been trading $EURUSD for a while now, mostly in and out quick. I'm trying to hold trades longer when the setup is strong, but scaling out is still throwing me. Say I'm targeting a move to a key resistance at 1.0950; do most of you scale out a percentage at 1.0920, then another chunk at 1.0940, or just hold the whole thing till your primary target and then trim? I'm finding that if I trim too early, I leave a lot on the table, but if I wait, sometimes it just whips back. What's the general philosophy here for maintaining exposure while securing some gains?

hamza_h · Accepted Answer

This is exactly what I'm struggling with too! I've been doing the 'trim early' thing and then kicking myself when it blows past my initial trims. So if you hold the whole thing, do you risk a larger retracement if it doesn't hit your exact target?

watchara_s · Answer

That's a good question. I've been wondering the same thing. Is there a general rule of thumb people use for how many pieces to scale out in, or does it depend entirely on the setup?

priya97 · Answer

Ah, the age-old dilemma of whether to secure some profits or let your winners run, only to watch them retrace. It's almost as if the market knows when you've decided to be greedy.

Scaling out of positions: best practice?

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