How to Scale Out of a Trade Without Regret
If you’ve ever asked yourself:
“When should I take profits?”
“Should I just sell it all now?”
“What if I sell and it keeps running?”
You’re not alone.
Most traders struggle with when and how much to sell once a trade is green.
That’s why I use something simple — the 60-20-20 Rule.
Let me show you how it works.
Why Scaling Out is Better Than Selling All at Once
Here’s the truth:
Selling everything at once feels good in the moment…
But it almost always leads to regret.
- You sell early, and the trade keeps running
→ You feel like you left money on the table - You hold the whole thing, and it reverses
→ You give up your gains (and your mood)
Scaling out avoids both.
It lets you lock in profits early, stay mentally flexible, and still catch big moves.
The 60-20-20 Method
Here’s how it works:
- 60% of your position comes off at your first profit target
- 20% comes off at your second target
- 20% is left to run until your final target or stop
That’s it.
You’re taking money off the table and giving the trade room to breathe.
Example: $250,000 Account
Let’s say your account is $250,000 and you risk 1% per trade.
That means your full position size is $2,500.
You buy $2,500 worth of SPX contracts (or whatever you’re trading).
Here’s how the scale-out would look:
| Target | % Sold | $ Amount | What’s Left |
|---|---|---|---|
| Target 1 | 60% | $1,500 | $1,000 |
| Target 2 | 20% | $500 | $500 |
| Target 3 | 20% | $500 | 0 |
By the time you’re at Target 1, you’re already locking in most of the win.
By Target 2, you’re padding the win.
By Target 3, you’re giving yourself a chance to ride the breakout or trend — without stress, because you already secured profits.
Why This Works Mentally
Most traders get emotional when a trade goes green.
They either panic-sell or freeze, hoping for more.
But with this method:
- You already know what to do
- You’re taking action based on a plan
- You’re never “all in” or “all out” emotionally
It gives you structure — and removes guessing.
Final Word
Scaling out doesn’t have to be complicated.
The 60-20-20 rule works because it’s simple, mechanical, and takes pressure off you.
You get the best of both worlds:
✅ Secure profits early
✅ Stay in the game
✅ Let your winners run — without regret
If you’re trading a real account, especially one over six figures, this is how you build consistency.
And if you’re using a tool like Gextron that helps you map your exit zones ahead of time, scaling out becomes even easier.
