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The best ways for profit taking

in stock market trading systems


OK, I hear you asking, “Why talk about profit taking. It’s easy.”

Nope! It’s one of the toughest issues for every trader. And it’s also why a lot of traders fail.

But your properly prepared stock trading strategy is your edge.

So, remember! Every trade is profitable only after profit is cashed on the account. Until you close your profitable trade, your profits are “virtual.”

You, as a good trader, must be prepared and know how and when to close your profitable trade and move money to your trading account.

First, you must accept that you will never take a profit at the best available price. You must never catch maximal (for longs) or minimal prices (for shorts) to close your trade. Every trader closes trade “too soon” or “too late.” What does this mean?

  • "Too soon" means the trader has a defined target and closes part of or the whole trade when this value is reached. You can define your target by several ways.
  1. You can use technical analysis tools to help you with this task.

  2. Using your trading journal you can create some statistics. Then, you know the best percentage value of the possible profit you can reach by trade.

  3. The last possibility is to have a defined fixed amount of value, like “I will close 1/3 of my shares when I have $1 USD profit per share.”


  • "Too late" means that traders use a trailing stop strategy for closing the trade. Good usage of a trailing stop is not an easy job.

    I recommend you use a small trailing stop for day trades and swing trades and larger trailing stops for position trades. A very good strategy is also to acknowledge the status of whole markets, and based on the current market situation, use closer or wider trailing stops.

A final word. Expect that your trade can finish with less profit than your expected target value. It can be also be a break-even trade or loss. Trading is not a perfect game it’s about being profitable!


My special stock market trading tip:

Read my "4 results of trade"




Return from Profit Taking back to Stock trading system



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