Scaling out of DAX trades – how do you handle it with multiple targets?
Hey everyone,
Been trying to improve my trade management lately, specifically with the $DAX. I'm finding that when I have a setup with multiple potential target zones (say, T1, T2, T3), I struggle a bit with how to scale out effectively. I generally aim to take off a portion at T1 to de-risk, but then if it pulls back before hitting T2 or T3, I often end up closing the rest for a much smaller gain, or even breakeven, when my initial analysis suggested more upside.
I'm curious how some of you more experienced traders in European markets manage this. Do you always aim for T1 and then re-evaluate? Or do you have a set percentage for each target from the get-go? What happens if T1 is hit but the subsequent price action looks weak – do you just dump the rest, or do you have a trailing stop strategy that kicks in at that point? Any insights or approaches would be really helpful.
Multiple targets can complicate things, especially with indices like the DAX that can reverse quickly. Perhaps re-evaluating the initial position size relative to each target's probability would make the scaling less stressful.