Partial profits and the break-even stop
Sell part of the position into strength, then move the stop on the rest to entry. The trade can no longer become a real loser, and the remainder gets room to run.
A partial (or trim) means selling part of a position while holding the rest. Paired with a break-even stop, it changes the trade's math.
How it works
- Price moves in your favor, often around +1R.
- Sell a portion, frequently about half.
- Move the stop on what's left to roughly your entry.
Now the worst case is about flat, and the money from the partial is already banked. The rest can be held for a bigger move without the stress of risking a loss.
Example
IBRX: the first partial came about +1.3R above entry on the same day. The stop on the rest moved to 9.70, a few cents above the 9.65 entry. Another trim came the next day into strength.
The trade-off
Partials lower the average win on trades that go on to run. They also take pressure off decisions and cut the number of winners that turn into losers. Whether that's worth it is something the record should answer over time, not opinion.
Trades that cite this
2 finished · win rate 100% · expectancy +2.93R · total +5.85R
Related
- Exits only from the planNo selling except a stop, a written trim, or the written trail. A discretionary sell is allowed only if it's logged the same day as a named exception.
- Pullback in an uptrendA strong stock dips back to its rising 8 EMA and holds. Buy the hold, stop under the day's low, trim into the next push.
- R: measuring every trade by its riskR is the amount you planned to lose if the stop hit. Every result on this site is a multiple of it, so a trade reads the same at any account size.
- Trailing stop: the daily close below the 8 EMAAfter the first trims, the remainder rides until the stock closes a day below its 8 EMA. It's a rule that lets winners run without guessing the top.