Do you like to take partial profits?
I don’t, the reason is simple, once the market moves on your favor, it is more likely to hit your take profit order, so the questions is: Why would you take partial profits (decrease your position size) if the market is more likely to hit your take profit order? Wouldn’t it make more sense to increase the size of your trade, since the market is telling you that you probably made the right decision?
So instead of taking partial profits I try to increase the size of my trades… Take a look at my trade on the GBPUSD, I actually had another opportunity to add to this position (I was sleeping though at the time the pound triggered my signal zzzzzzzzz) but I wasn’t awake, If I was awake, I would had taken this one:
I’m still looking for an opportunity to add to this trade though. We’ll see what happens.
I have moved my stop loss level though, once it formed a clear short term resistance level, I’m confident that if the market gets back to that level, it will get rejected again.
Let me know your thoughts!