When is the Optimal Time to Exit After Setting a Profit Target?

Pankitaaaa

The topic of setting profit targets and stop-loss points has always sparked discussions among gamblers. Stop-loss is relatively straightforward; you generally set a predetermined point and enforce it. However, determining the most suitable profit-taking point is more complex. I believe that gambling outcomes are mostly influenced by luck, which varies from person to person. Generally, luck can change rapidly. When luck is good, winning streaks might last for several days, but during bad luck, losing streaks can persist for a long time. So, how can we identify favorable and weak trends?

In reality, once we start gambling, we become immersed, and only outsiders can see clearly. Moreover, during times of high volatility, it becomes even harder to discern. High volatility often indicates rapid shifts between favorable and weak trends. If the gambling session lasts for several hours or more, significant volatility is likely, unless there's a strong favorable trend that maintains steady progress. It's nearly impossible to predict the extent of volatility in advance. When significant volatility brings the losses to the stop-loss point, the game might end immediately or for the day. In cases where the volatility tends towards a favorable trend, the challenge arises: how do we recognize when volatility is about to change and when to take profits and secure gains? Exiting too early results in missing out on potential profits, but delaying too much could allow volatility to erode a substantial portion of the gains.

Approach: My strategy is as follows. I set a stop-loss point upon entering and plan for multiple profit-taking points. For instance, my first profit-taking point might be around 30% of the initial capital. Once I reach that point, I would use two betting units to gauge the volatility. If it's a favorable trend, I might push for the second profit-taking point, perhaps again at 30% of the initial capital. If that's achieved, I might use three units to aim for the third profit-taking point. For illustration, let's consider an initial capital of 1 billion (1B) with a betting unit of 20. If I reach 1.3 billion (the first profit-taking point), I use two units to test the waters. If it's favorable and I reach 1.6 billion, I might widen the profit margin slightly and use three units to test. Assuming the third target is 1B, I would secure 540 million in profit if I fail, but if it's still a favorable trend, I might go for the 1B target. This pattern continues with increasing targets and corresponding unit increases. This strategy prevents significant volatility from erasing gains and aims for maximum profit.

Based on my practical experience, this method works, but the key is to maintain effective stop-loss points. I once managed to reach the third target with an initial capital of 1B, turning it into 5B within a few days. However, failure eventually ensued due to inadequate stop-loss control. After losing everything, constantly replenishing funds only leads to chopping wood for days and burning it in an instant.

Ritu13

I can achieve taking profits, but I struggle with implementing stop-loss.

Parvani449

Most players find it difficult to control both profit-taking and stop-loss.

Samiksha

I usually cash out when I'm in profit, as it helps meet the wagering requirement more effectively.

Ritu77

The approach you're describing, similar to the stock market, involves setting both profit targets and stop-loss points upon entering, strictly adhering to them, and aiming for long-term consistency with fewer losses and larger gains. Continuously replenishing funds after losing everything eventually leads to a situation where much effort is expended over many days only to see it vanish in an instant. This seems to be a common dilemma.

Sona59

Your insights are thought-provoking and truly insightful. I appreciate your contemplative approach.