If you’ve ever seen me posting trading signal or someone else, that looks like this:
📈 Buy $XRP at 0.540 – 0.545
🎯 TP1: 0.552
🎯 TP2: 0.561
❌ Stop Loss: 0.532
And thought, “What are TP1 and TP2? Do I sell all at TP1? Wait till TP2? What’s the smart move?”
You're not alone — and this guide will clear it up for good 👇
🧠 TP = Take Profit (AKA Your Exit Targets)
When traders or signal providers give TP1 / TP2 / TP3, they’re showing pre-defined price levels where you should consider selling to lock in profits.
TP1: First conservative target — often easier to hit quickly
TP2: Second target — more profit, slightly riskier
TP3 (sometimes): Extended target — usually used in strong trends
📊 Why Use TP1 & TP2 Instead of One Exit?
Because markets are unpredictable.
Some moves reverse quickly after hitting TP1.
Others explode past TP2 and TP3.
Splitting targets helps you secure profits early while keeping some position open for bigger rewards.
✅ It’s the balance between safety and growth.
📌 How to Use TP1 and TP2 in Real Trades
Let’s say you enter a trade with $300 based on a signal that has TP1 and TP2.
🔁 Suggested Allocation:
📤 Sell 50% at TP1 → Lock in profits, reduce risk
📤 Sell 50% at TP2 → Maximize gains if trend continues
💡 Optional: You can customize it:
70% at TP1 and 30% at TP2 for conservative traders
Or reverse it if you’re more aggressive
💣 Pro Tip: Move Your Stop Loss to Entry After TP1 Hits
Once TP1 is hit, many traders move their stop loss to breakeven.
This protects you from losing on the remaining trade if the market reverses.
“Risk-free” trading starts after TP1 — but only if you plan it.
❗ Common Mistakes to Avoid
❌ Exiting everything at TP1 — you’ll miss the bigger moves
❌ Waiting for TP2 without securing TP1 — risky
❌ No stop-loss management — one reversal can wipe it all
📈 Example Trade Breakdown:
Signal:
Buy $SOL at $145–$147
TP1: $151
TP2: $158
SL: $141
You invest $500:
Sell $250 at TP1 → Book profit
Sell remaining $250 at TP2 (or trail stop if price continues higher)
That’s a balanced, smart way to play both the quick scalp and the longer move.
🧠 Final Words: Learn to Exit Like a Pro
Most traders focus on when to buy… but the real skill is knowing when to sell.
TP1 and TP2 are tools that help you:
✅ Control emotion
✅ Lock in profits early
✅ Let winners run
Start using them with purpose — and you’ll trade like a strategist, not a gambler.
#MyTradingStyle #GENIUSActPass #lessonlearned #EducationalContent
