A few days ago, I posted about the warning signs PLTR was showing through the lens of relative strength, but in this case it was relative weakness that caught my attention. I highlighted how the trendline break would act as the confirmation for the setup, and that signal has already played out. Even so, I still think there is more room to the downside, as the next significant support level sits around the $150 mark.
To manage risk, I decided to take some profits off the table. I closed about a third of my position on the recent close. This allows me to lock in gains and reduce exposure so that if the trade unexpectedly reverses, my loss on the remaining position will be very small. It’s always important to respect risk and be ready for scenarios that don’t go your way.
I’m still holding two-thirds of my original position because I believe there’s a chance for a larger move down. The setup is still valid, and the technicals suggest that the downside momentum could continue before reaching the next support level.
. This trade is a good example of balancing risk management with conviction, taking profits where appropriate, but staying engaged for the bigger move.
It’s always a careful balance, but having a plan for both partial profits and holding a core position helps me manage risk while staying positioned for meaningful gains.
If you’d like to understand why I got into this trade in the first place, you can read my original PLTR trade analysis from a few days ago.
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