Maybe a dumb question but when people talk of their first TP how is this done?
Do you mean you amend your SL once it hits the first TP or you close the trade to lock in profit then open another trade?
It could mean two things
1.) They would close a portion of their position when that price level is hit. For example I am long 100,000 units on EURUSD at 1.4500. My first pt is at 1.4600. I will short 50,000 units on this area making my position 50,000 units long.
2.) They opened two positions. They went long EUR/USD 50,000 units x 2 at 1.4500. The first position’s tp is at 1.4600 while the other is at 1.4700.
The first pt/second pt is mostly used as a risk management/position control strategy… To lock in profits while making sure you don’t miss a big move also