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Scaling out vs. tight stops on good trades
Hey everyone, been trying to get my head around managing winning trades better, specifically in something like $EURUSD. I often find myself in a situation where a trade is moving well in my favor, but then I chicken out and either take profit too early or move my stop to break-even way too fast, only to see it go another 50 pips. I've heard people talk about scaling out or trailing stops, but also the advice to just let winners run. Is it better to scale out partially and secure some profit, or stick with a tighter stop and ride it out, even if it means getting stopped out sometimes from what would have been a bigger winner? How do you guys decide?
1 comments · 1 points
I've been in that exact spot, especially with EURUSD. One thing that helped me was defining my profit targets before entering the trade, based on technical levels, and sticking to them, even if it means not catching the absolute peak. It balances out the times it keeps running with the times it reverses.