minimise risks, lock in some profits

I had an interesting discussion today, and I thought the outcome was interesting so I figured I'd share the concept.

Helps one confidently lock in profits and minimise downside risk, but doesn't damage the potential for more upside in the stock your are trading.

This is not advice, just some basic maths... Also I may have stuffed up a sum or two LoL.

Example:

BUY 100,000 PTYP @ 10c (1c x 100K = $1000 per 10% move) (Exposure 100K = $10K)

SELL 17,000 PTYP @ 12c (1.2c x 83K = $996 per 10% move) (Exposure 83K = $7960 [$10000 - $2040] )

SELL 14,000 PTYP @ 14.5c (1.45c x 69K = $1000 per 10% move) (Exposure 69K = $5930 [$7960 - $2030] )

SELL 12,000 PTYP @ 17.5c (1.75c x 57K = $997 per 10% move) (Exposure 57K = $3830 [$5930 - $2100] )

At this point:
Cash = $6170
Stock = $9975
Real Risk = $3805

Etc, Etc...

In summary, you keep making money at a similar rate, but you dramatically reduce your exposure to downside moves...

And you have some spare cash to buy more stock when the market crashes :)

Anyone else got any ideas on this...?