Before taking a trade, you should map it out. Where you will take profits and where you will take a loss if the trade moves south.
Price Targets: Price Targets are set at previous highs or previous resistance, as well as 70 RSI. Decide how much you will sell at each sell target. I typically opt for 1/5. You could also choose 1/3 or 1/4.
Stop Losses: Stop Losses are placed at support levels. If price drops below these levels you take a loss. You can sell your full position, 1/2, or any other amount. Others choose not to sell any and will wait for price to move sideways again and average down.
See how I prepared for a $GRPN Swing Trade in the image below.
Remember, price has memory…