For those of you swing trading larger caps like $MSFT, do you usually scale out of positions as they hit targets, or just close the full position once your primary target is hit? I'm still figuring out the most effective way to manage gains.
Scaling out is almost always the smarter move, especially on something like MSFT where volatility isn't insane. You lock in some profit and still have exposure if it keeps running, rather than leaving money on the table or getting stopped out of everything on a small pullback.
I've found scaling out generally reduces the sting of retracements, but it can also cap your upside if the move extends significantly. It really depends on your conviction level for further upside and the current market volatility.
That's a good question! I've been wondering the same thing. Does scaling out impact your average profit per trade much compared to just hitting your first target and bailing entirely?