Many traders face a dilemma when a trade quickly turns profitable: should they scale out of the trade to secure partial profits or hold on for potentially greater gains?

At first glance, taking partial profits—i.e., closing a portion of your position while leaving some shares open—seems like a sensible move.

However, have you ever paused to consider the long-term implications of this approach?

Traders I’ve consulted with are often surprised by how much these partial profits can cost them over time when applied systematically.

For a comprehensive breakdown, I’ve written an article that delves into the trade-offs associated with partial profits. I invite you to read it for a nuanced understanding of this common but potentially costly trading tactic.

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Dave Mabe is a trader and the CTO at Trade-Ideas. He helps traders make more money by improving their strategies.

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