P
Predefined plan
Choose management milestones before entry instead of reacting to each candle emotionally.
Lesson · Trade Setup and Execution
Trade Management
Manage an open position using predefined milestones for holding, reducing, moving the stop, trailing, or exiting, and score discipline separately from outcome.
Synthetic educational examples
Core concepts
Use these concepts as explicit rules rather than changing them after seeing the outcome.
S
Stop only tightens
A stop may remain or move toward reduced risk; it should not move farther after entry.
O
Outcome is separate
A poor decision can make money and a correct decision can lose. Review both process and result.
Interactive lesson
Change the inputs, inspect the chart, and evaluate the decision before revealing the answer.
Candle 1Discipline 0 / 0
Trade management process
Use observable price or R milestones and preserve the original invalidation rule.
1
Start with the original plan
Record stop, targets, scale percentages, and trailing conditions before entry.
2
Act only at milestones
Use predefined structure or R events to change the position.
3
Never expand planned risk
Do not widen the stop or add risk after invalidation approaches.
4
Review execution separately
Score whether the plan was followed before judging the financial result.
Management decision drill
Score 0 / 0Choose the action supported by the written plan.
Management priorities
1
Preserve invalidationNever move a stop farther away to keep a losing thesis alive.
2
Follow predefined milestonesUse structure or R thresholds that were chosen before entry.
3
Record deviationsSeparate planned management from discretionary changes in the journal.
4
Evaluate across many tradesA single outcome cannot prove whether a management rule is superior.
Common mistakes
1
Moving to break-even too earlyNormal volatility can remove a valid trade before the planned trigger occurs.
2
Widening the stop to avoid a lossThis converts controlled risk into an unplanned larger loss.
3
Taking partial profit without a repeatable ruleRandom scaling changes average wins and makes backtesting unreliable.
4
Optimizing management from one memorable tradeRules require a broad sample across different market paths.
Completion standard
✓
Finish when you can run each tab choosing the plan’s action at every candle and end with a full discipline score.
Whatever the R result. A stopped-out trade managed to the plan scores higher here than a winner managed by feel, and the lesson is done when that ordering feels right.
Scope: This lesson teaches process and measurement. It does not provide live market data, personalized recommendations, or trade signals.