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Curious about scaling out vs. profit taking
Hey everyone, still pretty new here, and I'm trying to get my head around managing winning trades. I hear a lot about scaling out versus just taking profit at a predetermined level. Is there a general consensus on which strategy tends to be more effective for, say, mid-term swings in something like $SPX, or does it completely depend on the trader's style and conviction?
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It definitely depends on your personal style and conviction, but for mid-term swings in something like SPX, I find scaling out can sometimes help capture more upside while still locking in some profit early. What kind of drawdowns are you typically comfortable with on those mid-term trades?