Hi, hope everyone is having a great weekend.
I've been trying to workout the best way to scale out positions on winning trades in order to lock in profits but also let the trades run to maximise gains, I usually do short term trading.
For example: Let's say I have a $850 profit made from a sharp price rise, if i sell $850 worth of shares I would lock in the profit, by doing this the buy price of the remaining shares will be the same as the price I sold at to take profit, so in this case I would need to raise my stop accordingly to this new entry price, does this make sense?
Another way would be just to exit let's say in 3 stages selling by 1/3s if price continues to rise and move my stop higher, in this case the profit would be worked out by subtracting the cost of just the 1/3 of the position from the sale price?
So far I've been working on excel trying set up a table to make it easier but I just end up really confused, I'm not sure if I'm overthinking it or if there's a better way to plan this.
I'd be great to hear any ideas or techniques of how some of you do this.
Cheers
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