Risk and trade management
Take profit targets
The price where you close the trade in profit, decided before entering.
Why it works
Targets at logical levels get hit more often. Random targets either cut winners short or ask the market for too much.
How to use it
Aim for the next liquidity pool or swing in your direction, and make sure it is at least 2 × the distance to your stop.
The typical mistake
Moving the take profit further away during the trade because “it can go more”, and watching it come back to entry.
FAQ
What is Take profit in trading?
The price where you close the trade in profit, decided before entering.
How do you trade Take profit?
Aim for the next liquidity pool or swing in your direction, and make sure it is at least 2 × the distance to your stop.