If, when and how much I should partial out

[Teruki 21]

Hi there,
I have been on SIM for 2 months, and I am starting to hit (or get close to) my target more often than before and it has made me think more about the managing part of trading.
It is random when it comes to what I do with a seemingly winning trade now. Sometimes I get out without partialing out. I sometimes partial out before or after the target and let it run. They are all random and I know it would be much better if I make a rule for that. Even though it is on SIM, it makes me nervous wondering what to do next!

It seems like it is a matter of preference and the moderators too seem to have their own styles, like locking in some profit at an early stage or not touching until hitting 2R and then partial out etc. But I wonder if there is any guideline about it for a beginner. It is a bit confusing now to me. For example, If I partial out before the target, it changes the target level (from the "Reward" perspective) but should I lock in some profit? If so, what would be a good timing and how much (10%, 20% etc.)?..and so on. I want to make it systematic.

Any advice would be appreciated and thank you!            

Edited June 13, 2020 by Teruki

[Christopher 129]

So, I think there are a few  logical guidelines with partialling that not many people would argue with...

1. If you are going to partial, partial at a technical level ( daily / premarket level, large bid/ask on the lvl 2, your 2:1 / 3:1 /x:1, a moving average, vwap ect...) 

2. If you know the stock is say slightly overbought, but you see a nice ABCD to the long side, and you take it, you probably shouldn't sit back and partial out, as it's likely coming back sooner rather than later. In other words if your already feel its extended in the direction you plan to take it, getting out at a hard 2:1 or 3:1 is probably the play. 

3. Partialling on early morning momentum not at techinical levels is justfied, because you really don't know how far those are gonna go and price is moving REALLY fast, for example a 1 min ORB that breaks hard and fast in your direction

Other than that you just gotta feel it out, I'm of the opinion that people partial way too much. I'd rather have a set goal in mind, grab it, then look for another trade rather than sit and watch a small percentage of my position move for another 30+ minutes. 

Edited June 14, 2020 by Christopher Patterson

[Teruki 21]

Thank you Christopher.
This is a great guide for a beginner (at least for me). 
I was actually wondering about the difference between patialing with ORB and other (trending) strategies, so I am glad you cleared it up too.

[Teruki 21]

1 hour ago, peterB said:

it depends on your personality. after 2000 trades you will feel what works for you best. 🙂

some people do 25% at 1R then 75% at 2R, some people do not touch it until 2R, some partial 10% at every pop on their way. you need to see it statistically what it does on your trades if you are journaling your trades which you should

Thank you Peter 🙂 I realized this in the chatroom and lectures seeing even the moderators use totally different methods. I hope I can find what works (or fits my personality) best for me soon!