When to Book Profits? Smart Exit Signs Every Trader Must Know!Hello Traders!
We all love the feeling of seeing profits on our screen, but the real challenge is knowing when to book them . Exiting too early means missing the big move. Exiting too late? You give back most of your gains. So today, let’s break down how to identify the perfect moment to book profits —whether you're trading intraday, swing, or positional.
Top Signs You Should Book Profits
Price Hits Key Resistance or Target Zone:
When your price hits a pre-defined target, Fibonacci level, or a strong resistance, it's a clear signal to book partial or full profits.
Momentum is Fading:
Look for weakening RSI, MACD crossovers, or decreasing volume. These are signs that buying strength is drying up.
Reversal Candlesticks Near Resistance:
Patterns like Bearish Engulfing, Shooting Star, or Evening Star near key levels indicate a possible reversal.
News/Event Risk Ahead:
If there's a major earnings release, policy decision, or macroeconomic event ahead, it’s safer to secure some profits.
Risk-Reward Becomes Unfavorable:
If the remaining upside is less than the downside risk, reduce your position and protect gains.
Trailing Stop Loss Triggered:
Using trailing stops helps you ride the trend while locking in profits. If it hits, exit without regret.
Rahul’s Tip
You don’t need to catch the exact top. Profit booked is better than profit on paper. Focus on consistency and discipline. Let the markets reward your process, not just your predictions.
Conclusion
Booking profits is an art backed by rules. Follow your strategy, monitor price action, and trust your system. That’s how you grow and protect your trading capital in the long run.
How do you decide when to exit your trades? Share your strategy in the comments below!
