Many traders believe that letting winners run means no take profit, thinking that true professional trading requires leaving positions open indefinitely to capture massive moves. While allowing profitable trades room to grow is a vital principle of successful trading, having no structured take profit strategy can be just as dangerous as cutting winners too early. Proper trade management strikes a balance between letting trades breathe and securing gains intelligently.

The belief that letting winners run means no take profit misunderstands how real-world market dynamics and risk management work.

Why Traders Think They Must Never Take Profit

Several ideas encourage this misconception:

• Quotes from trading legends: Traders often hear “let your winners run” without context, assuming it means abandoning all profit targets.
• Desire for huge gains: Traders imagine catching massive moves and maximising every trend, believing fixed exits limit potential.
• Fear of missing out: Closing a trade too soon, only to watch it continue, creates emotional pressure to hold without plan.
• Simplified trading advice: Some mentors or social media sources promote overly black-and-white thinking about exits.

However, a complete lack of structure around taking profits often leads to inconsistency and regret.

The Real Meaning of Letting Winners Run

Letting winners run properly means:

• Allowing a trade to reach its full logical target: Based on technical, fundamental, or risk-reward frameworks — not emotions.
• Extending targets when conditions improve: If new price action, trend acceleration, or fundamentals strengthen, adjusting the take profit makes sense.
• Using dynamic exits: Trailing stops, scaling out, or multi-target strategies help lock in gains while leaving part of the position open for bigger moves.
• Avoiding premature exits: Staying patient through normal pullbacks within an overall trend, rather than closing trades out of fear.

Letting winners run is about intelligent patience — not abandoning discipline.

Why Having No Take Profit Is Risky

Trading without any take profit structure creates several dangers:

• Emotional decision-making: Without a plan, fear and greed dominate exit decisions.
• Profit reversals: Trades that were significantly in profit can return to breakeven or loss if no logical exit exists.
• Lack of performance consistency: Random exit points make it hard to assess a system’s real edge over time.
• Risk-reward imbalance: Without measured exits, the risk taken on trades may not justify the eventual reward.

Thus, letting winners run without a framework often leads to worse — not better — results.

How to Let Winners Run Smartly

Successful traders use structured methods to let profits grow:

• Trail stops behind structure: Move stops below higher lows (uptrends) or above lower highs (downtrends) to lock in profits while allowing space.
• Partial exits: Close part of the position at a logical first target and leave the remainder open for a larger move.
• Use moving averages: Some traders trail stops behind moving averages like the 20 EMA or 50 EMA for trend trades.
• Pre-plan flexible exits: Define both initial targets and dynamic exit rules based on how the market evolves.
• Reassess at key levels: Major support/resistance zones or psychological levels can signal when it is wise to secure gains.

Flexibility within structure creates both bigger wins and consistent results.

Examples of Letting Winners Run Properly

• Swing trader: Closes half of a position at 2R (twice the initial risk) and trails the rest using a daily moving average.
• Trend trader: Keeps the trade open while the market remains above a rising trendline, exiting only on a confirmed break.
• News trader: After a news-driven breakout, lets the trade run by trailing behind the low of each successive bullish candle.

Each example shows that letting winners run involves thoughtful management — not blind hope.

Conclusion

It is completely false to believe that letting winners run means no take profit. While patience and discipline are essential to capturing larger moves, professional traders manage exits strategically. Combining flexible targets, trailing mechanisms, and partial exits allows traders to maximise winning trades while protecting profits intelligently.

To learn how to master trade management techniques that balance patience and precision for maximum profitability, enrol in our expertly designed Trading Courses today.