Risk Management: How to set a Take Profit (TP) for your trades

Hello everyone:

Today let's dig into an important topic of setting a Take Profit (TP).

While many traders will often have different strategies and methods on a TP, let's take a look on my approach and style on this.
ITs important to understand there is no right or wrong when it comes to setting a TP.
ITs what you have in your plan and what makes sense to you as a trader. It should align with your strategies and trading style also.

Some may take profit quicker and move on, while others hold for longer term. Understand that both methods can have drawbacks, it's what trading is, double edge.

So, make sure we follow our plan and executive accordingly to our management. Otherwise we are just making emotional decisions again.

Let's look at a few scenarios on how I would set a TP.
Directly tie in TP is a SL. I usually will only enter a trade if I have 3:1 RR.
Meaning risking 1% to gain 3% or more. Therefore my TP will almost always be 3 times of initial SL amount or room.

Few TP scenarios:
-Beginning of the the previous correctional structure

-Double Bottoms/swings low area, watch for LTF reversal price action and correction

When price breaks ATH, monitor the price action on the LTF for bearish reversal.
I would want to see a trend change, rather than a pullback.

Few things to consider:
-Understand you will never enter at the lowest point, and exit at the highest point

Make sure you have a plan before so you will not get into an emotional decision.
Always know what you plan to do before it happens.
No Right or wrong as long as you follow your original plan.
You can of course in time modify your plan based on market conditions.

Any questions, comments or feedback please let me know :)

Thank you