Viewer Mail - questioning exits

This came in via email, and I thought it was worth sharing:

"...why did you sell all at the fibonacci extension on ABX, but only 1/2 at the same point on GLW on today's trades?"

I always have a profit target in mind when I enter the trade. To become a consistently profitable trader you have to learn that exits are more important than entries, and having a profit target is key to the exit.

To address the specific question - the profit target for both trades was the Fibonacci extension. In GLW, that was reached in one very strong bar - so, it was a good indication that price might continue to rally. Therefore, I closed 1/2 the position and let the other 1/2 ride until I saw weakness and a probable point of reversal.

ABX reached the target quickly, but not in one bar. I could have closed 1/2 and let the other 1/2 ride, but I did not have a good feeling about it. And, a lot of trading boils down to how you feel about a trade - based, of course, on past experience and having studied thousands and thousands of charts. In this case, I was right - ABX went sideways for much of the rest of the day. But, there are many cases where I have done the same thing and the stock continued the move - meaning I could have doubled my profits had I stayed in 1/2 the position.

The bottom-line - I have profit targets, and while I may use some discretion on part of the position, I adhere to my rules and my targets to ensure that I make good money consistently.