Take Profit

A take profit is the mirror image of a stop loss. Instead of closing at a loss, it closes your trade when price hits your target profit level. Like the stop, you set it at entry — before emotions kick in. Take profits matter because winning trades are psychologically harder to manage than losing ones. Without a pre-set target, traders watch a +50 pip win turn into +10, then to +0, then to a loss. A TP forces discipline: you planned the exit, now the exit happens automatically. Targets should be placed at structural levels: the next resistance for longs, the next support for shorts. They should be at least 2x your stop distance (1:2 risk-reward minimum). If you can't find a target that far, the setup isn't worth taking.