1. Only use closing candles:

This is a close strategy without interfering with your original trading idea, which makes you more likely to get a better end result.

Most traders won't gain any benefit from looking at the all-day chart, which will make them worry about price movements in one candle, while the closing results are likely to return. completely different. By using only close candles, you will rarely make impulsive decisions based on these types of price movements. This means better transaction management and less intervention on your original trading idea.

Pinbar is a perfect example of this. Due to the Pinbar's nature, many traders must have thought that at some point the price would completely go in one direction, before a sharp reversal in the other direction. Waiting for the candle to close will give you a very different picture of the market from what is happening in the middle.

2. Use alarm bells to quote prices:

Setting alarms also helps you get into the habit of thinking before you do it. By planning "what if ..." scenarios are a great way to pre-define how you will manage your trade, including how you will exit your trade and where to take your profits. . Alerts are also very useful if you want to fill orders (add to active positions). Just set alarms at the appropriate prices and you can!

3. Determine an appropriate take profit level

The prices mentioned above, after subtracting a few pips for things like spread, will be your take profit. Using this method will achieve many things: first, because your take profit is no longer an arbitrary number, and it will be the price range where the highest probability the market will find. Second, you can determine if your R: R (risk: reward) is worth it. For example, a trade setup looks really good, but if it has a support level a bit further than the take profit level, you shouldn't risk entering this trade with just a 0.5 R reward.

How to determine the take profit level:

Identify support and resistance levels on the chart. These are not just horizontal lines, but areas where prices have historically made great moves. This doesn't mean that our prices will always move to those levels, but prices tend to retest current support and resistance levels, as you can see on the chart below:

For buy orders, place your take profit a few pips below the resistance level. For a sell, order place your take profit a few pips above the support level. We do this (add/subtract a few pips to the stop loss) to avoid spread and it will make our trade safer than placing the stop loss at exactly where the resistance/support is support.

4. Partially take profit:

This is an advanced concept and you should not try this out if you are just starting to trade. Partial profit taking allows you to receive a portion of your trading profits when the price reaches a certain point.

The partial profit taking strategy is a good strategy to limit the above. If you may have made a certain amount of profit, you accomplish two things: first, you make sure you have some "return". Second: you cut your trade volume for the rest, which means if your trade stops losing, you will lose a smaller amount than before.

Of course, the opposite is also true: if the price ends up continuing to move in your direction, you will be less profitable. However, we need to make trade-offs, and preserving capital is always better than profits.

There are many ways you can take partial profits. Here are a few ways:

a, Take profit 50% of position:

Using this method, you only need to take half a position when the price moves half the way towards your price target (You can use the Fibonacci extension, price target of the chart pattern, or take profit points according to their method). This is a very simple take profit strategy, but your profits will also decrease along with the R / R ratio will decrease because only your trade volume reaches the target at the second point. A good rule of thumb in this strategy is to move your stop loss to breakeven after the first profit is reached.

b, Take profit 3 times:

In Mark Douglas's book Trading in the Zone, it talks about taking profits and how he divides profits for each trade into three equal parts. Assuming you trade 3 lots, the following happens:
  • After the price has moved 1/3 of the way to the target, you close 1 lot.
  • After the price has moved two-thirds, you close 1 more lot while moving your stop loss to breakeven.
  • Price to target, take profit at last rest.

Since you moved your stop loss to breakeven after the second level, from then on, your trade is essentially risk-free. It's an easy way to distribute the potential profits you can make while leaving room for the market to continue moving.

c, Method 80/20:

The 80/20 method is a modification of the Pareto principle, applied to transactions. Basically, you still take partial profits, but when the first take profit is reached, you pocket 80% of your trading position and move the target for the remaining 20% to a further level.

The advantage of this method over the 50% take profit method of positions is that when the first take profit is reached, you will make most of your profits. This means - although the probability that a second take profit can be reached is very small (in my opinion it falls within 1/5) - it does not affect your overall expectations much. like when 50% of your position is still open (Your sentiment will be more comfortable and there is not much concern or worry). Besides, when the second take profit level is reached, it usually compensates for the profit of the previous take profit because the take profit point is very far away from the entry point.

Consider using your first take profit enough to make your trade's overall R: R worthwhile. Also, you should think about how to effectively move your stop loss to maximize your chances of taking profits on the second portion of your order, while minimizing the loss of your un-pocketed gains. We can either use a fixed stop loss in pips or you could try strategies like moving averages based stop loss. The best approach will depend on your own strategy, time frame, and the volatility of the market you are trading.