Link: A Technique for Profit Taking

Oct 6, 2007: 5:54 PM CST

Chris Perruna recently provided some thoughts on how to take profits. Should you use a stop? Should it be a hard target? What if you have multiple positions in the profit zone?

“Many books attempt to explain how to take profits and several academics offer advice but most of it is fluff and biased to opinion.”

Chris then discusses a hypothetical account and risk parameters, and discusses three scenarios designed to help you understand a few potentially new concepts relating to protecting profits.

He concludes with the statement:

“Whatever the case may be, the idea is to capture profits while allowing them to grow within a reasonable risk/reward money management system that you have developed. [Once] you know what your objectives are, [then] design a system that will allow you to achieve them!”

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