You Asked: “When to Take Profit on a Trade”

Recently in one of our Power Trades University live Group Coaching sessions, one of our members asked a very similar question...

When you have profit, how do you know when to take it and exit the trade?

The answer to this question is key, because if you get out too early you may miss out but if you get out too late your greed could actually make you lose money. 

So - what's a good rule of thumb of when to take profit?

I answer it in the video snippet below.

The first thing you should always have before you enter a trade is a game plan. 

In Power Trades University, we use a specific Trade Tracking system and formula to determine your risk/reward ratio and how to find your maximum profit. 

We always encourage NEVER getting greedy, so we also outline an area of when to take profit, even if its not a maximum. 

This ensures a higher chance of locking in profit instead of milking every last cent which could easily turn into a loss in a volatile market (like the one we are experiencing now). 

Typically if I have hit a 50% return on my initial investment on a trade, I lock in profit and close it out. 

You never go broke taking a profit. 

Click here to see how you can be apart of the Power Trades University community and access your risk/reward ratio tracker, as well as how to ask questions like this member was able to do so.