Taking Profits

The Nifty continues to move inside a trading range between 2700 and 2800. A breakout on either side may not provide a sustained trend. Just after 2800, w ehave resistance at 2850. On the lower side, below 2700, there is support at 2635. Thus, we can expct choppy market conditions to prevail while the Nifty makes up its mind on where to go.

Meanwhile, let us discuss on the ways to take profits.

When do I get out of a trade? Our exits are controlled by Fear and Greed. Fear gets us out too early and Greed keeps up in too long.
The answer lies in having your rules to take profits. While the rules should be matching the market flow, here are some examples:
1. For a day trader:
If a position is not profitable, I will exit after 60 minutes.
If a position sees a sudden move in my favor (range expansion), I will quickly close half of my position.
I will not allow a profitable position to become a loss. Thus, once a trade is profitable for 30 minutes, I will move mys top to break even.
2. For Swing Traders:
I will carry a position only if it is not closing at a loss.
When I am buying a dip in equities, I will exit on a 2% move in my favor.
I will enter when price touches a Support/Resistance level. If price does not quickly move in my favor then I will watch for an opportunity to close out as close to breakeven as possible.

I hope you get some ideas