Knowing When to Take Profits

When I asked what worked in 2025, nobody said "I held every winner to maximum profit."

Instead, I heard variations on a theme: learning when to take money off the table changed everything.

This isn't about being conservative. It's about survival and sustainability.

Today, I continue sharing what your fellow traders learned this year. (Using initials to respect privacy)

The Greed Monster

R was brutally honest: "Of all the emotions that torment a trader, I struggle with greed the most. Too much risk, not taking profits when I should, etc. This year, if price makes a big move outside of the 3 ATR Keltner channel, I'm either rolling to a higher strike or taking a profit."

He found his rule. His line in the sand. And his account is up 4x.

F's confession hit differently: "I've had a decent year, likely ending up around 20%, however, I was up over 30% in October and I f&cking gave it all back. Why? Greed. Lack of patience. Risking too much. Not always knowing when to get out."

Up 30% in October. Gave it all back. That's not a failure of strategy—it's a failure of profit-taking discipline.

The Systems That Work

Multiple traders shared their specific frameworks. These aren't theories—they're battle-tested rules that actually worked in 2025.

J laid out his approach clearly:

"When the market was bullish - This worked well: Sell half of my position at 125% gain which ensured a profit. Sell the remaining position at 200% gain. Yes, I missed a few homeruns, but this seemed to give me better consistency."

He missed some home runs. But he had consistency. That's the trade-off.

JF, who describes himself as still very much a beginner, found his system: "I would try to sell 25% of my option whenever it hit +100% and then another piece when it hit 200%. My beginner thought process was that I was not seeing this type of win too often, so locking in some profits made me feel better about letting a smaller piece ride."

Notice the honesty: "I was not seeing this type of win too often." So when he got them, he protected them.

FL learned the hard lesson and adjusted: "I used to stay in a trade and just let it run up with no target. Now, just like with the stop, after my target is hit, I can reevaluate whether I want to get back in or if the trade is over."

No target became specific targets. And his portfolio "looks healthier."

The Sell-the-Double Philosophy

R mentioned adopting a "sell the double" mentality: "I love the mentality of eliminating risk and creating a free ride."

This came up repeatedly in different forms. Take out your cost basis. Let the rest run. You're now playing with house money.

It's not perfect. You'll give back some winners. But psychologically, it's incredibly powerful. Once you've eliminated your risk, you can hold through volatility that would otherwise shake you out.

The Partial Profits Revelation

C discovered the power of legging in and out: "Biggest thing for me this year was legging into and out of positions. I used to be 'all or nothing' but have learned to leg in, add where appropriate, take portions of profits off the table while still letting winners run. This helped alter the right or wrong, black or white mentality into the world of greys and reduced the pressure of day to day trading."

"The world of greys." Beautiful way to put it.

Trading isn't binary. You don't have to be fully in or fully out. You can take 25% here, 50% there, let the rest work.

The October Lesson

Multiple people mentioned October/November as the period that either made or broke their year.

VJ was blunt: "AI trade worked really well for me up until October until it didn't after. I had the best year this year for the past 4 years... up until October until the year turned decent but not great in the past two months. Part of it is me to blame for not taking the money to run, I should have taken a break but did not."

He knew he should have taken profits. Knew he should have taken a break. Didn't do either.

R's story was the most gut-wrenching. In February, she got caught in euphoria and lost a lot. Then it happened again in October:

"Our accounts were at an all time high, and if felt like it did in February (euphoria) either the market was going to blast though this point... or it was going to fall... I could have been up 50%+ right now. I am hoping and praying to close the year positive at this point."

She recognized the euphoria. Knew what was happening. But froze instead of acting.

Her lessons: "When you feel the euphoria - take the profits off the table... Don't rely on or wait for others for exits (even if they are the 'experts' or are a 'paid service'), it is still your money."

The Consistency vs. Home Runs Trade-Off

This came up again and again. Do you optimize for big winners or consistent profits?

R acknowledged it directly: "Your recent emails concerning 'threading the needle' between holding on to trades for big winners and not letting them go against me is something I really struggle with. I've rolled many, many positions this year and I'm sure I've left some bigger gains on the table, but if I roll for a nice credit then I'm taking risk off the table and keeping skin in the game."

He chose consistency. His account is up 4x.

B shared similar thinking: "I track my P&L weekly and total them up across all 4 accounts. In aggregate I have had only 1 losing week since early April, which I am super proud of. It is not life changing money, but it is consistent performance, aiming for singles and doubles and keeping the portfolios moving."

One losing week since April. Singles and doubles.

That's a winning approach.

The Real Lesson

Here's what I'm taking from all this: the traders who thrived in 2025 weren't the ones who predicted the biggest moves or caught every winner.

They were the ones who had a system for taking profits and actually followed it.

They missed some home runs. They left money on the table. They probably closed positions that kept running without them.

But they're still here. Their accounts are up. They're not hoping to finish positive—they're celebrating real gains.

The difference between greed and discipline isn't philosophical. It's practical. Greed says "I want it all." Discipline says "I'll take what the market gives me and protect it."

One approach feels better in the moment. The other actually works over time.

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Sean McLaughlin | Chief Options Strategist, All Star Charts