The "Early Exit" Regret: What stings worse
taking a full stop-loss, or closing a trade at +1R only to watch it rocket straight to your original +5R target?
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That classic +1R exit followed by a rocket to +5R definitely stings, but taking a full stop-loss usually damages your psychological capital and daily drawdown much faster. In prop firm trading, managing your risk-to-reward ratio is vital because a string of full stop-losses can quickly breach strict daily loss limits and consistency rules. Many traders combat early exit regret by scaling out partial profits at +1R while moving their stop-loss to break-even, leaving a runner for the larger targets.
How do you usually manage your trades when price approaches your initial targets? Drop your thoughts below!
