Why having 2 TP targets is good
Hello, in this educational post I will be talking about why having 2 or 3 TP targets is good. As an example, I will be using one of the trades I have running currently on EURUSD. My initial target for this short position is to hit the lowest point of yesterday and it was going well until a pullback happened which is currently happening right now and probably reaching my entry point. If I didn't have more than 1 TP target, this trade could potentially be a loss or a breakeven but since I had another target that is closer to my entry point, I could close half of my position, move my SL to breakeven, and secure some profit. On the graph, you can see that I secured 33.5 pips of profit by closing half of my position so that if the price reverses, I would still gain some profit off of this trade and it did eventually reversed. A rule of thumb I normally use for my first TP is half of my final target or a closer/weaker support/resistance level. I do not recommend having more than 2 or 3 targets if you are relatively new to trading.
*This only applies to Intraday Trading, Scalp, and Short Swing Trades.*
To conclude all my points:
1. Having another TP before your final target is good to secure profits in cases it reverses.
2. Move to SL to breakeven once your first target is reached so if it reverses, you are guaranteed profit.
3. A rule of thumb I normally use for my first TP is half of my final target or a closer/weaker support/resistance level.
Please give a thumbs up if you agree with the educational post and if there are any questions, feel free to comment down below.
*This only applies to Intraday Trading, Scalp, and Short Swing Trades.*
To conclude all my points:
1. Having another TP before your final target is good to secure profits in cases it reverses.
2. Move to SL to breakeven once your first target is reached so if it reverses, you are guaranteed profit.
3. A rule of thumb I normally use for my first TP is half of my final target or a closer/weaker support/resistance level.
Please give a thumbs up if you agree with the educational post and if there are any questions, feel free to comment down below.
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