Trade Management: How to Manage Positions During the Trade

Many traders spend time finding the perfect entry but neglect what comes after: trade management. How you manage a position after entering is just as important as the entry itself.

Key Trade Management Techniques

1. Break-Even Stop

2. Trailing Stop

3. Partial Closing

4. Scaling In / Pyramiding

5. Scaling Out

The Trade Management Plan

Before the Trade

During the Trade

After the Trade

Common Trade Management Mistakes

1. Moving Stop Loss Too Early

2. Taking Profit Too Early

3. Having No Plan

4. Not Following the Plan

5. Adding to Losing Positions

Psychology of Trade Management

Conclusion

Trade management is what separates winners from losers. A good entry can get you into a trade, but good management determines whether you make a profit.