 So in this video, I'm going to be talking about profit taking and really where the best place Potentially is to take profit because it's a question that a lot of traders struggle with and what we want to do is try and maximize our profits and this conversation really was kind of sparked by Earlier this week where a trader said to me in our discord group that he says Leon You have given me so much confidence to hold my trades longer just closed the euro Aussie with a six point six and a half to one risk reward gain and You know I've applied, you know that I'm happy to hear and then well done now It's just about taking those higher quality trades and the key is to hold, you know, like you've been doing If you can you know just a couple of these trades every month and you know Rocket quality of a quantity and value over price action and then there was a another trader who Because this was um, you know put in the group This this this trader this level and another trader said that he was in the same The euro Aussie trade but chickened out and made a deep but he made a decent three to one No, and out of all the traders that are still in this trade. I guess I'm the only one And because I've learned to really kind of hold trades now It can be difficult to hold trades and we Tend to want to you know take profit We look at our unrealized profit look at the fact that we're up, you know You know a good two three four to one and it's easy to kind of snatch the profits But but none of us really know How far the market can go so we have to try not to approach Um trading from an emotional standpoint as far as you know taking the money and run right sometimes we can actually Leave money in the market and see how far it will go so You know, uh, well my entry was somewhere around here I think maybe some other traders got got a better risk reward, but mine was around here And I'm still in this trade now my long-term target. Yeah is You know somewhere could be anywhere down here. I'm going to let this I'm going to let this run As far as potentially possible right and some people might say well how I'm asked me be asking how You know, how do you know where to take profit? Let the market stop you out? Yeah, maybe you can have an overall goal Yeah an overall um Goal as far as you know, maybe you want to try and head down to maybe somewhere around here for some logical reason so a logical reason maybe It might be for example the yearly low it might be you know the the low from you know a couple of years ago It might be a fresh, you know demand zone, etc Whatever the reason is have an overall target. Yeah, where you potentially want to take profit as far as you know, maybe Way into maybe the future maybe somewhere down here where you can go for maybe 15 to 1s 20 to 1 type trades and then secondly what you want to do is You want to maybe take profit and scale out along the way so an example of this is I have a a potential Scale out point, you know somewhere around here where I'm going to be taking at least maybe something like you know 80 percent, you know 75 80 percent of the trade Off the market if it can get down here and then I'm going to let 20 percent run for maybe as far You know as it can possibly you know go because I'm already up the trade can't lose and You know for the whole year Let's say for example, I could hold this trade for a year Maybe, you know 20 percent of my overall position can turn into you know a monster trade Who knows how far this can go and all I have to do is do what it's just hold but holding can be very hard obviously when You are in a trade and you're you know, you obviously we do want to make money so But holding trades gets easier If You're already in the money and you can you know take maybe 80 percent off and let maybe 20 percent run another way that I you know It makes it easier on my psychology is by entering two positions and letting one run so I have a video on that matter of fact You know And the link is probably going to be up on the top right hand side somewhere I'll put it on or if not in the in the link in the description box below But what you want to do Like I said, he's entered two positions and then when you if you get you know Maybe that's something like a two to one on one of the positions It makes it a lot easier to then hold the second trade. Yeah And let it run For you know to a logical level now When it comes to choosing levels as well I think, you know, why would I potentially think that prices could come down here or even further now with technical analysis What we do is we look and especially supplying demand zones is I'm looking at levels That may potentially break. Yeah, and and may not hold on Why would this level potentially break is because this level has been touched several times Yeah, so we've got a level where it's been touched once twice already Probably three four times if we want to include that So the more times an area is touched is the weaker it becomes So that has a better chance of Of of breaking through yeah and going down to maybe a fresher area of demand Or supply so whenever you have an area that's been touched several times Don't look at it like it's a problem area and it could reverse and it could reverse it You know, it could do something like this But it has probably more of a better chance of breaking through that level if it's been touched, you know once twice three times four times and I'll give an example of this as well um on the euro Swiss trade and another trader in the group today took um 175 pips on the uh, it says uf, which is the euro um dollar franc Uh dollar swiss and the two to one on a higher move up on the same currency pair And the setup was this The setup was uh All right Here we go. Sorry the setup was here Now at the time yeah, um You know, this is where some the trader got in somewhere around around this area here Yeah, and by now we're saying to them I said to them and everyone who was in the group Yeah, what you want to do is go for fair value targets Yeah fair value targets or eight percent of the range targets. Yeah, and the reason why that is is because When you get a large move You'll see this Let me just uh delete these out of the way All right, when you get a fairly large move to You know and prices stopped and prices don't pull back Yeah, it's a fair value because at some point the market has to pull back to what is known as fair value So from this high to this low We don't get any pullbacks and as we continue To go lower Yeah, prices don't pull back to that fair value Yeah, prices continue down and lower and lower. There was no major pullback. There was no major pullback Yeah, there was no major pullback Here we just keep dragging it down. So We've got a setup. We've got a nice demand zone around here prices make the high highest high lows and then there was you know Prices came back down into this zone on the monday. There was an entry Um around here to get involved in the trade So I was saying to you know that trader what you want to do is look for this fair value target as you know, you're one of your first potential Targets and I explained and I broke this down simply because you don't have A pullback at some point, you know, this is if if you're looking at this being An absolute bargain and it's being a cheap area or this being You know an expensive area and it's being a cheap area depending on which one you're buying So for me, I'm looking to buy the u.s. Dollar. So this area represents an absolute bargain so at some point Prices have to get go back to you know The midpoint between You know an expensive area and a bargain area and that is known as you know, the fair value target so as The dollar was bought, you know in a potential bargain area Going back to The target Yeah, this was an area where there was potential supply right here and this level had been touched Several times Yeah, so this level has been touched once twice already so As this level had been touched I was fairly confident that prices would break through Because it had been touched already and it became weaker in the same way and the euro was he You know That level had been been touched several times So we can now see Obviously that you know what happened around here and prices have now hit that fair value target. So Two things Whenever you want to go for extended targets look to see whether Price has been touched, you know at that level several times and then don't worry If you know you're under if you run if you understand that you're buying as far as fundamentally You're buying at a bargain area Yeah And you want to go for extended targets like the fair value ensure that it's the levels that you know Any levels that are in your way Potentially from reaching that target have been touched at least, you know once or twice Yeah, and then obviously there was the take profit It took maybe about what since the third of february. So About a week a week or two You know to reach that nice nice swing trade that And uh, you know well done to that trade as well for you know looking to to hold the trade as well Holding is not easy. It's not easy to do but like any skill. Yeah If you're not driven by short-term gratification and go for more low-term gratification All you need is a few of these trades every, you know month or two Where you can get, you know, your your five six eight to ones ten to ones because like I said, none of us know How far prices can go and now even this first target what this trader could have done is taken 80% off Yeah of that and then let the 20% run Yeah to see how far this can go because That that 20% Yeah of whatever his if you you know risk 1% for example that 20% can then turn into you know an extra Uh, who knows if you know, I mean the upside is is unlimited. Yeah, so Try and do that maybe this year make that be one of your goals rather than, you know Snatching at profits this year and always going for maybe short term maybe two to ones one and a half to one type trades You know when you get to and I'm always an advocate of at least going for at least a two to one Yeah, so whenever you get, you know, maybe hit a two to one instead of maybe just taking profits and then looking for the next trade Maybe take 80 90% off and then let the 10 20% run and see what happens And then you get into the practice of holding trades because that's really what's gonna end up, you know Growing your account you don't have to do anything because you're already up You can move your stop if you want to to break even and things like that or trail it up If you're still really scared and really shouldn't be if you're already in the money and you already banked your profits, but Um, and just see how far it can run, you know, if you're watching this Um, I'd like to you know hear back from any of you guys that have got this far into the video That that are really going to take up the the challenge. Yeah of you know Of of swing trading and just to see the effect that it has on your overall, you know account and And if you can get some of those really, you know big moves because we all want To make these, uh, you know these large moves here, but how many of us are willing to actually hold Not many anyways guys rambled on a little bit. I hope you guys have a Have a great trading week into next week as well and Happy valentine's day for those who are celebrating it and take care