The referenced video describes closing part of a position so that some contracts remain open if the price continues to move, along with the speaker’s feelings while holding the position. This is personal experience, not comparative evidence that partial exits are better than closing a full position or using another plan.
How to calculate the remaining position
If you hold 4 contracts and close 1, 3 remain, or 75% of the original position, before costs and any change in contract value. If you close half of a 2-contract position, 1 remains. These examples show how to count position size; they do not forecast profit or loss.
Set an exit plan before entering
- Write down the reason for entering and the conditions that would invalidate your view.
- Identify whether you may close part of the position and why.
- Plan for the remaining position, including a stop level, target, or maximum holding period.
- Recalculate the risk of the remaining position instead of relying on how a price move feels.
- Check costs, liquidity, and actual contract specifications.
Understand the trade-offs
Closing part of a position reduces the size still open, but also reduces participation if the price continues in your favor. The remaining contracts still carry market risk. A partial exit does not make a position “safe,” and a realized gain should not distract from the risk on what remains open.
Evaluate a rule with records, not a feeling
To compare partial exits with another method, define the rules and test period before reviewing results. Include costs, and compare maximum loss, volatility, average outcomes, and different market conditions. Do not select only favorable examples. Past results do not establish future performance.
Risk-management guidance
TFEX advises traders to plan for risk and manage capital before trading. Read TFEX’s Money Management guidance and TFEX’s risk-management guidance for beginners, especially when trading products that use leverage.
What this video covers
The video discusses partial exits and the speaker’s reaction to them, but does not provide a complete set of exit rules or performance data for comparing strategies. This article explains mechanics and considerations; it does not recommend a specific exit method.
References
Original video
Watch the original video on YouTube: Take-Profit Strategy