Take Profit
A preset order that closes a trade once price reaches your profit target. It locks in gains without having to watch the screen.
You buy at $50 with a stop at $48 and a take-profit limit at $56, a 3-to-1 reward-to-risk setup.
Stop Loss's other half. Set your target before you're in.
A preset price where you sell automatically to lock in a gain.
A preset exit at your profit target.
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The Little Book of Common Sense Investing
by John C. Bogle
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