Entering a trade is easy. Exiting a trade is where the money is made.
Most beginners suffer from two psychological diseases: **Fear** (closing early) and **Greed** (holding until Stop Loss is hit).
The cure is **Active Trade Management**. By having a mechanical rule for locking in profit and reducing risk, you remove emotion from the equation, ensuring you **protect your capital** after entry.
SVG 1: The "Free Ride" Strategy (Locking in Risk-Free Trades)
1. The Breakeven Rule (The Safety Net)
The first goal of any trade is not to make money; it is to **protect your initial capital**.
Moving your Stop Loss (SL) to Breakeven (Entry Price) creates a **"Risk-Free Trade"**.
The Golden Rule:
- Only move SL to Breakeven after price has moved **1R to 1.5R** (1 to 1.5 times your initial risk) in your favor.
- Or, wait for price to break a new **Structural Level** (e.g., Higher High, or a confirmed Break of Structure).
Example: If your Risk is 20 pips (1R), wait for price to be +25 pips in profit before moving SL. Moving it too early means you risk getting stopped out by random market noise.
2. Taking Partials (Paying Yourself)
Professional traders **"Scale Out"** to lock in guaranteed profit and secure their psychology.
The 50/50 Strategy:
- **TP 1 (Conservative):** At 1:2 Risk-Reward ratio, close **50%** of your position.
- *Result:* You have banked profit and covered your risk. Stress is gone.
- **TP 2 (Aggressive):** Leave the remaining **50%** ("The Runner") open and move its stop to Breakeven to catch a massive trend move.
3. Trailing Stop (Catching the Home Run)
How do you catch a large move without guessing the top? You use a **Trailing Stop** based on market structure.
Method A: Structural Trailing (Recommended)
In an Uptrend, price makes Higher Lows. Every time a new Higher Low is confirmed, move your Stop Loss **just below the new Higher Low**. This gives the trade maximum room to breathe while continuously locking in profit.
Method B: Moving Average Trailing (Passive)
Use a moving average (e.g., 50 EMA). Place your SL just below the EMA. Exit only when a candle **CLOSES** below the EMA, signaling structural breakdown.
4. "Choking" the Trade (A Common Mistake)
Beginners trail their stop too tight (e.g., 5 pips away from the current price). **This suffocates the trade.** The market needs room for natural pullback. Always leave a buffer based on **structural lows/highs**, not current price.
SVG 2: The Active Management Checklist
5. The "Twin Trading" Setup
To make scaling out easy on platforms like MetaTrader, use the **Twin Trading** technique:
Instead of opening one position of 1.0 Lot, open **two positions of 0.50 Lots** at the same time.
- **Position A:** Has a fixed Take Profit (e.g., 1:2 RR).
- **Position B:** Has NO Take Profit (The Runner).
When Position A hits TP, you manually move Position B's stop to breakeven. Now you can relax and let Position B fly, knowing your profit is secured.
Final Thoughts
You cannot control the market. You can only control your entry and your exit.
Active Management turns trading from a "Win/Lose" game into a **"Win Small / Win Big"** game.
Once you secure the bag (take partials), you have already won. The rest is just a bonus.
