This is the very same point I'm at with the system I'm using. I'm absolutely confident in the systems ability to create great entry points but knowing how far to let the profits run is always difficult. I'd suggest doing a statistical study of your own past trades using the system. You're very likely to find some common areas of resistance (or support if shorting) that tend to hold in your unique situation which you can use to take partials/exit. When you know the probability of your winners running to 2R, 3R etc versus the win/loss ratio (obviously this will become smaller as you increase the R value) you can then decide whether you're comfortable letting them run further (if the statistics suggest it's a good idea)

I can get a fairly good idea of a stocks range of movement (as a percentage), based on looking at a chart. For longer term swing trades, I set my targets as a percent from my entry point. I would only take profits if it broke my trailing stop (from some set moving average, not the price) before reaching the profit target.

For day trades, my method is different. I work off of pivot points to find an entry point. I am now familiar enough with the stocks I day trade to know how far the price usually will run from the pivot point. I only day trade stocks that I have watched and have an understanding of their typical behavior.

http://acekingtrader.blogspot.com

http://www.pivotpointcalculator.com

I will say that hte trading volume begins to diminih and the candle sticks begin to shorten and at the top the round shape of hte head is to begin to form it is the time to exit.

Exit strategies are often overlooked. In most systems entries get all the attention, but exits will often determine your profitability.

If you're looking for something mechanical, there are several indicators that work great for stops. SAR is a good one as it tightens up your stop the longer your trade runs. Trailing stops using multiples of ATR is a very popular method. Fibo levels or pivots are powerful exit targets. I will usually exit all or part of a position when price stalls at a trendline or S&R;.

For something discretionary, You'll just have to use the same methods you use for entering. One thing I've used is to ask myself, "Would I enter a trade in the opposite direction?". If yes, I exit my existing position. Scaling out is an excellent way to relieve some of the stress you are experiencing. Most traders I know of who are trading any real volume, scale in and out of their positions. Unless there is a strong reversal signal, it can be wise to let a small portion of your positions run after moving your stop loss to break even or even locking in a profit. On a strong tend day, I've made more profit from that small portion I let run rather than all my scalps combined.

I always go for trailing stops. Anything above that stop can never be mine. I try to trail using short term bounces. In this if my stop is taken away I am happy. But then I will again reenter in same stock or currancy pair if my entry rules allows me.

I always go for trailing stops. Anything above that stop can never be mine. I try to trail using short term bounces. In this if my stop is taken away I am happy. But then I will again reenter in same stock or currancy pair if my entry rules allows me.