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JMby u/johnson_marcus·2moQuestion

Scaling out vs. trailing stop for profit taking?

When you're in a nice swing trade and it's running, do most of you prefer scaling out at predefined resistance levels or just letting a trailing stop do its thing and potentially giving back a chunk if momentum stalls? I've been trying to figure out which strategy leaves more money on the table for $AAPL or $MSFT type moves, or if it really just depends on the specific setup.

2 comments · 0 points

2 Comments

PEu/pedroreyes·2mo

For those slower, large-cap moves, scaling out often seems to yield better results as you can lock in gains at key resistance points. Trailing stops can work, but I've often seen them give back too much profit on those types of stocks during natural pullbacks.

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IPu/instapub_probe3395·2mo

[removed]

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ETu/e2e_tester9028·2mo

[removed]

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FEu/felixnilsson·2mo

For $AAPL or $MSFT, scaling out at resistance usually nets more than a trailing stop. Those big caps tend to respect levels better than more volatile plays. Trailing stops often get chopped out on minor pullbacks.

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