Key Points — Trade Management

• Trade management starts after entry. It's the ongoing process of handling a live trade until it's closed.
• Your exit plan should be set before entry. Deciding how you'll manage a trade while it's still hypothetical keeps emotion out of it.
• Move your stop to breakeven once the trade proves itself. This removes downside risk without needing the trade to hit full target.
• Scaling out locks in progress. Taking partial profit at set levels while letting the rest run balances security with upside.
• Trailing stops protect gains as price moves in your favor. They let a winner keep running instead of capping it too early.
• Never widen a stop once a trade is live. Doing so increases risk beyond what you originally planned.
• Overmanaging is a mistake. Tightening stops too early can cut a valid trade short on normal price noise.
• Watch correlation risk. Multiple open trades in correlated pairs can multiply your real exposure.
• Stay aware of upcoming news. High-impact events can spike volatility while a trade is open.
• Journal every trade. Reviewing your management decisions afterward is how you improve them.
• Managing risk and managing profit are different jobs. One protects your capital, the other maximizes what a winner gives you.
• Remove emotion with a plan and automation. Predefined rules and automatic orders beat in-the-moment decisions.

Answer all 15 questions, then hit Check Answers. Explanations will appear under each question.