# plymgary replies to: When price is close to TP what should we do?

When Price is close to TP, what should we do?

I literally just watched a video by Sam Seiden that discusses this very thing. I will recount the tale here (based on a true story):

Jim is a trader for a well-known bank. After diligently studying his charts, Jim spies an opportunity. He strides into Bill’s, the head-trader, office.

Jim: ” I’ve found a great trading opportunity in the Market. I only have to risk \$1,000,000.00 to make \$10,000,000.00.”

Bill scrutinizes Jim’s charts. Convinced that Jim is on to something, Bill smiles and says, ” Put that baby on.”

Jim rushes to his desk and places the trade. In short order Jim’s position in profit \$8,000,000.00*. Jim beams as he stares at the computer screen. “An \$8,000,000.00 profit might get me an office and a huge bonus”, he says to himself. One hour later, the trade has moved up to the \$9,000,000.00 profit level. Suddenly, the market changes direction, and the profit is down to \$6,000,000.00. Steadfast in is believe this move is a “correction”, Jim stays the course. Price inches back in his favor an Jim soon finds his position is \$7,500,000.00 in profit.

The trading floor swells with activity. The dull roar is now a buzz. Something is going on. Jim focuses on his screen as he tried to drown out the floury of activity around him. Price jumps up. The profit is now \$9,000,000.00. In a blink of an eye, it shrinks down to \$6,5000,000.00. Jim’s hand inches closer to the mouse. Anther burst of orders, and profit is back to \$8,000.000.00. Jim flattens his position.

Jim struts into Bill’s office like the cock of the walk.

Jim: “I exited out of that trade. It netted us \$8,000,000.00.”

Bill: “\$8,000,000.00 !?! You’re fired.”

Jim: “Excuse me. What do you mean I’m fired?”