Taking Profit Too Soon

- Adjust target criteria to scale out at different position.

- Increase target criteria for higher targets.

- Use a trailing stop.

- Adjust stop criteria to wait for candle closing

Assume you’re a swing trader and you find that you take profit way too quickly. Because of this, you’re leaving money on the table. How do we fix this?

1. Try scaling

Setup a parameter to where you are scaling your trades. Take 50% of your position off at your first target, and leave the other 50% for higher targets.

2. Set higher targets

Increase your targets in your strategy. Not only will it give you a better risk/reward but also decrease your desire to sell early.

3. Use a trailing stop

Using a trailing stop will allow you to stay in trades longer. Instead of taking profit early, you can rely on the trailing stop to guarantee you profits while you’re in the green.

4. Wait for a candle closing

Instead of taking profit early, wait for the daily candle closing. This will give you confirmation that price may want to continue in its direction, allowing you to hold your position longer to catch higher targets.