{"id":21632,"date":"2024-03-06T07:30:57","date_gmt":"2024-03-06T12:30:57","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21632"},"modified":"2024-03-06T07:30:57","modified_gmt":"2024-03-06T12:30:57","slug":"time-to-take-profits-on-another-trade","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/time-to-take-profits-on-another-trade\/","title":{"rendered":"Time to Take Profits on Another Trade\u2026"},"content":{"rendered":"

When I first started trading, I remember how much I hated weekends…<\/p>\n

Waiting for the markets to open up again on Monday was agonizing. I couldn’t wait to start trading again.<\/p>\n

Trading was fun, it was exciting, and I wanted to get as much practice as possible.<\/p>\n

Back in those days, it didn’t take much to convince me to get into the next trade.<\/p>\n

Of course, most of those trades were poorly planned. And predictably, the results weren’t all that great.<\/p>\n

A Priceless Lesson <\/h2>\n

It took a couple of years for me to learn a priceless lesson…<\/p>\n

Good trading is boring trading.<\/p>\n

Your trades shouldn’t<\/em> be exciting. Good trades are methodical and planned out in advance.<\/p>\n

As you mature as a trader, you’ll find yourself simply doing the same thing over and over again.<\/p>\n

And that brings us to a trade I put on your radar back on January 24 in XHB, a homebuilders ETF<\/a>.<\/p>\n

Regular readers will know a key part of my trading plan is to look for trend continuation setups.<\/p>\n

These setups are the highest probability setups you’ll ever find.<\/p>\n

They occur after a market has made a strong directional move. After such a strong move, the market will often pullback or base in a sideways fashion.<\/p>\n

It’s these pullbacks and bases that create these continuation setups.<\/p>\n

In the case of XHB, that’s exactly what happened.<\/p>\n

XHB had a strong upwards move from October 25, 2023, to December 15, 2023<\/p>\n

After this move completed, XHB traded sideways in a basing pattern which broke out on February 8.<\/p>\n

This base was the trend continuation setup I called out on January 24.<\/p>\n

And sure enough, following that February 8 breakout, XHB has traded higher once more.<\/p>\n

You can check out this sequence on the chart below.<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

Now, it’s time to lock in some gains on this trade.<\/p>\n

Risk Management <\/h2>\n

XHB is showing signs of being very overbought. But this doesn’t mean that XHB can’t go any higher.<\/p>\n

So what we want to do in a situation like this is use a trailing stop loss.<\/p>\n

A trailing stop loss allows us to lock in a gain while ensuring we can still stay in the trade if the market decides to keep going up.<\/p>\n

<\/p>\n

\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

My suggestion would be to place a stop loss order just below the March 1 daily low of $102.56.<\/p>\n

So long as XHB keeps trading above $102.56, you’ll remain in the trade. And of course, we can trail the stop loss higher if the stock trades higher.<\/p>\n

On the other hand, if the trailing stop loss is breached, you’ll still walk away with a nice gain if you bought the breakout like I suggested on January 24.<\/p>\n

Happy trading,<\/p>\n

\"Signature\"<\/p>\n

Imre Gams<\/p>\n","protected":false},"excerpt":{"rendered":"

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