Section 6 · 9:30 AM Open
Managing an Open Trade
Your job doesn't start until after you enter
Your job does not start until after you enter.
Entry is 20% of trading. Trade management is the other 80%. Once you are in a position, you are in a continuous real-time decision process: monitor volume, watch VWAP, evaluate whether thesis is intact, decide on adds or reduces. The difference between good traders and great traders is almost never the entry — it is what they do after entry. The tools: hard stop, volume monitoring, partial profits, and trailing stops.
3 things to know
Setting a hard stop immediately after entry removes emotional decision-making from your worst-case scenario.
Declining volume on a winner is an early warning — the momentum driving your trade is weakening before price confirms it.
The trailing stop is the professional's tool for letting winners run while preventing a winner from becoming a loser.
Dive Deeper
Key vocabulary — tap each card
Practice
Active Trade Management Protocol
Set Hard Stop Immediately After Entry
Before anything else — set the stop. This is not optional. If the platform crashes, the news goes bad, or you freeze, the stop protects you.
Monitor Volume — Decline Means Reduce
Volume declining while price still rises is bearish divergence. Reduce position size by 25–50% before the price confirms weakness.
At First Target, Sell 1/3 to 1/2
At your first price target, sell one-third to one-half of the position. This guarantees real realized profit regardless of what happens next.
Trail Stop Up, Never Down
After taking partial profit, move the stop up to your entry price (breakeven) or just below the most recent swing low. Never move a stop lower.
Exit if Price Breaks VWAP or Trend Candle Closes Red
If price breaks below VWAP, or a candle closes red on high volume, the trend is likely broken. Exit remaining size — do not hope.
Did you know?
The simplest trade management rule: take partial profit when you are up 1x your risk. If you risked $100, sell half when up $100. This guarantees the trade cannot turn into a loss.