4) Trading Strategy
Knowing when to buy is important, but knowing when to sell is MORE important. Take profit is the art of selling at the right time — before ripe fruit turns rotten.
Take profit is the act of selling a stock that has reached your predetermined profit target. The goal is to lock in gains (realize profit) before the price reverses downward.
Take profit is like picking fruit. When the fruit is perfectly ripe, pick it immediately — enjoy! If you're greedy and wait for it to ripen more, it falls off or rots on the tree. Same with stocks: profit on screen is just a number. Profit that's been sold is actually money in your account. 'Paper gains' can vanish within hours.
Say you buy BBCA at Rp 9,000 with a take profit target at Rp 9,500 (about 5.5% profit). When price reaches Rp 9,500, you sell and enjoy the profit. Could the price go to Rp 10,000? Maybe. But it could also drop back to Rp 9,000. Disciplined traders take certain profit rather than chasing uncertain gains.
After understanding this concept, apply it in tools so decisions become more objective and measurable.
Open Profit / Loss CalculatorIs it better to take profit all at once or gradually?
For beginners, taking profit all at once at one target is simpler and less stressful. As you gain experience, you can try partial take profit — e.g. sell 50% at target 1, 30% at target 2, and 20% with a trailing stop.
How do you determine risk-reward ratio?
Risk is the distance from entry to stop loss. Reward is the distance from entry to profit target. If you buy at Rp 1,000, stop loss at Rp 950 (risk Rp 50), then the minimum target at a 1:2 ratio is Rp 1,100 (reward Rp 100). So potential profit is 2x the potential loss.
