Trade Management — Complete Guide

What is Trade Management?

Trade management is everything that happens between entry and exit — moving stops, taking partials, trailing, and decision-making while in a live position.

Management Framework

Phase 1: Initial (After Entry)

• Hands off — let the trade develop
• Don't move stop for at least 1-2 candles
• Trust your analysis

Phase 2: Break-Even

• Move SL to entry price after gaining 1R
• This makes the trade "risk-free"
• Only do this if structure supports it

Phase 3: Lock Profit

• Trail stop behind new swing points
• Take 50% partial at 1:2 R:R
• Let remainder run to full target

Phase 4: Final Exit

• Hit take profit target
• OR trailing stop triggered
• OR thesis invalidated by new structure

Partial Profit Strategy

Position: 1.0 lot

At 1:1 R:R → Close 0.5 lot (50%) → Move SL to BE
At 1:2 R:R → Close 0.3 lot (30%)
At 1:3 R:R or target → Close 0.2 lot (20%)

Result: Guaranteed some profit once 1:1 hit
Psychological benefit: Huge pressure relief

When to Move Stop Loss

NEVER move SL when:

• Trade is in initial phase (first 1-2 candles)
• Based on emotion (fear/greed)
• Against your original plan

Scenario Handling

Related Topics

• Exit Models — Exit strategies
• Risk Management — Stop placement
• Entry Models — Initial setup
• Trading Psychology — Management emotions