LD Lossdog Research
topic

profit taking

5 matching records.

Trade idea

Trade idea Profit Taking

The speaker suggests that in swing trading, traders should take profits at around 50% of the expected move in a stock. This is based on the idea that the probability of reaching the expected move is low, and thus, traders should aim for a realistic target that allows for risk management. The speaker also mentions that taking profits at 50% is considered optimal in this context.

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StrategyProfit Taking
Time horizonShort-term, typically within the expected move timeframe.
Entry / triggerWhen a stock is expected to move by a certain amount, such as $10.
Target / exitTaking profits at around 50% of the expected move, such as $5.
Invalidation / stopIf the stock does not reach the expected move, the trade may be considered invalid.
SpeakerSpeaker
Risks
  • The expected move may not be accurate, leading to potential misjudgment of the target area.
  • The strategy may not be optimal for all market conditions or individual trading styles.
profit taking
high confidenceVerify in video at 28:20 ↗
Q&A

Is the decision to take profits based on duration, price, or something else involved in that?

The decision to take profits is not solely based on duration or price, but involves other factors as well.

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Actionable takeawayProfit-taking decisions involve more than just duration or price; other factors must be considered.
profit taking
high confidenceVerify in video at 47:41 ↗
Q&A

What percentage of profit should be taken in swing trading?

The speaker suggests taking profits at around 50% of the expected move in a stock, as it is considered the optimal point for profit taking in swing trading.

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Actionable takeawayTraders should consider taking profits at around 50% of the expected move in a stock to manage risk and optimize returns.
profit taking
high confidenceVerify in video at 28:20 ↗
Q&A

What are your parameters and benchmarks for taking profits when you go long or short a stock?

The speaker suggests looking at the expected move of a stock over a specific period (30-50 days), then setting a target at 25% or 50% of that expected move. They emphasize that this should be less than the expected move and serve as a target, not a hard stop.

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Actionable takeawaySet profit targets based on expected stock movement, typically 25-50% of the projected move over a defined period.
expected moveprofit takingTrading Strategy
high confidenceVerify in video at 11:05 ↗
Q&A

How do you determine the point at which to take profits in futures trading?

In futures trading, profits are typically taken at a certain percentage of the expected move. For example, if the expected move in the S&P is 40 points, a reasonable expectation is to take profits at 25% of that move. This approach helps manage risk and capitalize on market trends effectively.

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Actionable takeawayTraders should consider taking profits at a percentage of the expected move to manage risk and optimize returns.
futures tradingprofit taking
high confidenceVerify in video at 40:15 ↗