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Scaling out of positions - how do you manage the risk/reward?
Hey everyone, still relatively new to active trading. I've been experimenting with scaling out of positions, taking partial profits at predetermined levels, but sometimes it feels like I'm leaving too much on the table, or worse, my stop gets hit on the remaining portion after taking a tiny bit off. For those who consistently scale out, how do you adjust your initial risk sizing or profit targets to make this strategy truly effective?
2 comments · 0 points
It's a common dilemma. Have you considered using a trailing stop on your remaining position after the first scale-out? That way, you're locking in more profit as the trade moves in your favor, rather than relying solely on a fixed stop that might be too close.