Trade Management

What this unit covers

Learn what happens after you enter a trade: moving a stop-loss as the trade goes your way, and deciding whether to book partial profits.

By the end you will be able to

• Explain why managing a trade is a separate skill from entering it.
• Describe how trailing a stop-loss protects gains while leaving room to run.
• Describe why someone might book partial profits instead of holding the whole position.

How it starts: A Trade That Started Going Right

1. You buy a stock at 500 rupees and set a stop-loss at 480.
2. The price climbs to 540 rupees, well past what you expected.
3. Your stop-loss still sits at 480, so what do you do now?

Words you will meet

Stop-loss

A price set in advance where you sell to limit how much you can lose on a trade.

Partial profit-taking

Selling part of a position while it is favourable, keeping some gain for certain and leaving the rest invested.

Checkpoint

A moment you choose in advance to review whether your stop-loss or profit plan needs changing.

In this module: Risk Management

1. Stop Loss
2. Position Sizing
3. Risk–Reward
4. Trade Management (this unit)