Chart Fanatics
August 6, 2026
Why Traders Lose Profits by Not Taking Partial Gains
TL;DR
Traders lose money by refusing to take partial profits near their target, risking realized gains for minimal additional points—a risk-reward disaster like giving up 95 points to chase 5.
Key Takeaways
- 1A trader's position was five ticks from target but refusing to close cost them the entire trade when it reversed completely
- 2Chasing the last 5 ticks while risking 95 points of drawdown is a terrible risk-reward ratio that most traders overlook
- 3Giving up $50 in potential gains to protect a position that was already profitable is mathematically superior to holding for marginal extra points
- 4Traders often believe they have a 'risk-free trade' when actually they're risking realized profits that have already been earned
- 5The psychological mistake is not recognizing that profits already in the account are the real asset at stake, not hypothetical future gains
Notable Quotes
“How much money are you making over the last five points of the five ticks that you're waiting to take that out? To me, I'd rather just close it and give up the 50 bucks.”
— Trader
“You're risking on realized profits is what you have to really determine.”
— Analyst
“You are giving up 95 points for five.”
— Analyst
Chapters
1. The Five-Tick Mistake
A trader was five ticks away from hitting their profit target but refused to close the position early, resulting in the entire trade reversing and losing money instead of taking a win.
2. False Risk-Free Perception
Traders mistakenly believe they have a 'risk-free trade' when five points from target, but they're actually risking 95 points of realized profits for only 5 additional points of gain.
3. Greed Over Mathematics
Chasing an extra $50 in marginal gains while exposing already-earned profits to a 95-point reversal is irrational—closing the trade early is the mathematically superior decision.
4. Protecting Realized Profits
The key mental shift is recognizing that money already in your account from profitable positions is the real asset to protect, not a hypothetical additional few points.
Glossary
- Ticks
- The smallest price movement unit in a trading contract; five ticks equals the minimum increments in futures or micro contracts
- Risk-Reward Ratio
- The relationship between potential profit and potential loss on a trade; a 5:95 ratio means risking 95 points to gain 5
- Realized Profits
- Money that has already been earned and locked into a trading account from closed or partially closed positions
- Partial Profits / Taking Profits Off
- Closing a portion of a winning position early rather than waiting for the full target, reducing exposure while locking in gains