What is a good margin?
Once you’re in a profitable trade, the next challenge becomes when to take that profit.
The main problem with taking profits is that, by our very nature, we humans (and especially traders) are greedy. After all, we want to make money. A lot of money. And we want to make it fast. “Get rich quick,” right?
This is a definite problem, and many traders are way too greedy. They want to get rich on just one trade. And that’s when they lose.
Here’s the key to trading success: small profits, consistently.
Consistency is the key, because if your profits are consistent and predict - able, then you can simply use leverage to trade size. Therefore you MUST know when to exit with a profit.
Good traders use a stop loss; great traders use a profit target.
The main problem with taking profits is that, by our very nature, we humans (and especially traders) are greedy. After all, we want to make money. A lot of money. And we want to make it fast. “Get rich quick,” right?
This is a definite problem, and many traders are way too greedy. They want to get rich on just one trade. And that’s when they lose.
Here’s the key to trading success: small profits, consistently.
Consistency is the key, because if your profits are consistent and predict - able, then you can simply use leverage to trade size. Therefore you MUST know when to exit with a profit.
Good traders use a stop loss; great traders use a profit target.
Should I take profit now? Will it go up to $140?
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
STD0313 : I sold 1/4 my position with just a bit lower average. I never like completely closing. Instead, I use options for short-term rakes.
Ultratech STD0313 : selling $T-REX 2X LONG NVIDIA DAILY TARGET ETF (NVDX.US)$ for profit and holding nvidia. then at earnings $GraniteShares 2x Short NVDA Daily ETF (NVD.US)$ and selling that for profit and holding nvidia
STD0313 Ultratech : well I do agree they are going to buy the hype sell the news on earnings.....I believe a new high will be set before earnings
Ultratech STD0313 : I don't care about the news. I follow nvidia for its potential to outperform the market. not thinking about profit taking I have other positions I can do thst with
STD0313 Ultratech : no you just use an etf to short it off earnings.....That is the trade plan you just told me, or did I miss something......so one way or another you are taking profit. No?
Ultratech STD0313 : I have a few ideas
101764215Moi : just sold my NVDA at 122.50 for 20 units which purchased at 118. Still hv 30 units!
Ultratech 101764215Moi : if you're going to do that there's better stocks for more quick profit. nvdia is a long hold.
104309970 : Low, in, high, out
101764215Moi Ultratech : Agree, better invest in TSM which is d king of all semiconductors despite a big expensive than NVDA!