When do you use profit-targets versus trailing profit stops when taking profits?

[Wide Tailz]

Targets seem to work better with tiny patterns on minute charts (daytraderz).

Trailing stops work better for position traders or fundamental investors. They can also work with automated strategies in a short time frame. Unfortunately they are reactive, so slippage not bad until you really need to get out...

 

[TimtheEnchanter]

It depends on your system, but basically there are two ways to trade:

If you are trend-following then your target must be dynamic (trailing stop of some kind), as some trends can last a long, long time.

If you are trading the range then the target is clear, it is simply the other side of the range.

Most traders prefer to pocket their winnings quickly (for instant gratification), and let their losses run (to avoid pain), while they should be doing the exact opposite.

That's why trading is so hard, it goes against our human nature.

Great post BTW, but I am inclined to use trailing stops even in a rangebound market. What if the range is about to be broken out of? What if the top of the range that I assume, is not going to be reached? I would tighten my trailing stop at the top of the range may be, and if the range is broken out I get back in.
The market is unpredictable and I accept it.