Take Profit
Automatic order to close position when price reaches target profit level.
Take profit (TP) is a pre-set order that automatically closes a position when price reaches a target level — realizing profit without an emotional decision.
Why TP is essential:
•Eliminates greed — prevents waiting for "just a little more" which often turns profit into loss
•Automates exit — you don't have to constantly watch the chart
•Part of the system — without TP, trading is improvisation
Where to set TP:
•Resistance level (technical analysis)
•Fibonacci retracement levels (1.618, 2.618)
•Round numbers ($70,000, $100,000)
•Risk/reward ratio — if stop-loss is 5% down, TP should be 10%+ up (1:2 R/R)
Advanced strategies:
•Partial TP — close 50% of position at first target, let rest run
•Trailing take profit — moves as price rises
•Scaled exits — multiple TP orders at different levels