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 Exit Targets for
Two Unit Positions

In past Traders World articles we have demonstrated various trade entry and stop loss placement strategies. While learning when to enter a trade and learning where to place a stop loss are essential for risk management, money cannot be made until a trade is exited. So learning where to exit a trade is as important as learning where to enter a trade.
Before we talk about common price targets to exit trades, we must first talk about the importance of trading multiple units.

Multiple Units
One of the important lessons we teach at Dynamic Traders Group is to always trade multiple units. If you are new to this business, start with trading two units. Seasoned traders should trade three or more. This article shows price targets for positions with two units. For a futures trader trading two contracts, one unit would be one contract, for a six lot forex position, one unit would be three lots, for 1000 shares of stock, one unit would be 500 shares, etc.
Trading multiple units can result in profitable trades even when analysis is incorrect. Trading multiple units also can put a trader in the position to earn great profit if the analysis is correct especially if each unit is exited at the price targets that will be demonstrated in this article.

The 50% Retracement
A common price target we use to exit one unit of a trade or at least consider exit strategies is the 50% ret. of the previous trend. The reason this is a common price target to exit one position is the 50% retracement is the minimum price target for a typical correction. So if only a correction to the previous trend is unfolding and the first unit is exited at the 50% retracement, a trade could potentially end up as a wash (breakeven), if not a small profit.