"Let the profits run."
It sounds like wisdom.
Like something Yoda would say if he traded SPY options.
But when I first heard it, all it did was confuse me.
Because every time I tried to let my profits “run,” here’s what actually happened:
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The stock reversed.
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My unrealized gains vanished.
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I ended up bag-holding into break-even—or worse.
So I started asking:
What does “let the profits run” actually mean in the real world?
And how do you let them run without losing your shirt?
Here’s what I’ve learned (after losing more than I’d like to admit) about turning that vague advice into a tactical edge.
🧠 Where the Phrase Actually Comes From
“Let your profits run” is one half of an old trading mantra:
“Cut your losses short, let your profits run.”
It sounds great. But most people (my past self included) butcher both parts.
We:
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Hold losing trades way too long
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Take profit too early because we're scared to lose what we've "got"
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Exit good trades just because we see red candles
The result?
Small wins, big losses. A slow bleed that looks like “almost working.”
🤯 My Reality: “Profits Run” = “Gone in Seconds”
I’d be up 6%, thinking “nice little win.”
Then I’d hold for 10%.
Then the chart rolls over, and now I’m only up 2%.
Then flat. Then red.
“Well, I was up 6%…”
Sound familiar?
This happened so many times I started believing I just wasn’t meant to trade.
But the real problem wasn’t the market.
It was my lack of system.
🔁 How I Finally Fixed It: A Practical Approach to “Letting Profits Run”
Here’s how I reframed everything:
✅ 1. Let the System Decide, Not Your Feelings
If you’re relying on gut, you will cut winners too early every time.
I now use:
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Trailing stop-losses (manual or automated)
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ATR-based targets (Average True Range)
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Time-based exits (e.g., hold for 3 days unless signal changes)
This took out the guesswork.
“Let the profits run” became:
“Let the price hit the system-defined exit, not your panic button.”
✅ 2. Scale Out, Don’t Sell Out
One of my biggest breakthroughs:
Stop going all in—or all out.
Now I:
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Sell 50% at first target (lock in some gains)
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Move stop to breakeven
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Let the rest trail until trend breaks
This way, I get both safety + upside.
✅ 3. Use Structure-Based Exits
If you're holding “because it’s green,” that’s not a strategy.
I now ask:
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Is it above a key moving average?
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Are higher highs still forming?
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Is volume confirming?
If those answers flip, I exit.
Not because I “feel like it”—but because the structure broke.
✅ 4. Reframe Risk: Unrealized Gains Aren’t Yours Yet
This mindset helped me:
“Your PnL isn’t real until you book it.”
So if you're up 20% and lose it all trying to hit 40%?
That's on you.
Sometimes “letting it run” just means holding through one more candle of structure.
Not forever.
🧾 A Real Trade Example: What Finally Worked for Me
Stock: $SMCI (oh yes…)
Entry: $640 on breakout retest
Plan:
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Take partial at $700
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Let rest trail with a 10-day EMA
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Exit all if closes below 10EMA on high volume
What happened?
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Partial hit at $700
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Price ran to $770
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I exited second half at $752 when trend weakened
Total gain: 17.4%
No panic. No regrets. No “I should’ve sold earlier.”
Just a plan that let me ride momentum without chasing fantasy.
🧠 5 Truths About Letting Profits Run That Saved My Sanity
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It’s not about hitting home runs—it’s about stacking base hits.
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A good plan protects profits without capping potential.
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Your exit strategy matters more than your entry.
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“Running” profits doesn’t mean forever—it means “until your edge weakens.”
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You’ll never catch the top—and you don’t need to.
📊 TL;DR If You’re in a Trade Right Now and Just Came Here for Help
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Letting profits run ≠ Holding blindly
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Build a structure-based exit strategy
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Take partials early, trail the rest
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Stop exiting on emotion
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Trust your system more than your feelings
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