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Trade management for the beginner
I was wondering if it's be beneficial to "limit" my options, when it comes to trade management.
Al often gives us many different choices for management.
An example could be the choices of, when to take profits.
Like actual risk, initial risk, measured moves and swing it until premise is wrong or until the end of day.
Would you advise the beginner, to always use the same management style?
An example could be:
High probability Bull BO trade.
First half of position: Exit on 1:1 Measured move of BO.
Second Half of position: Swing until strong sell setup with good context
Early exit full position: on strong sell setup with good context
And not bothering with actual risk, 1:2 MM's and other types of support/resistance for exiting.
If I change management style all the time, I believe it would be much more based on emotions like fear and greed.
I could easily see myself exiting early on actual risk on the trades that would have given huge gains.
And hoping for the big winners on the trades, that only would allow for actual risk profit targets.
I'm only trading one contract so battling this now too. Ideally, I'd trade two contracts setting a predetermined target for one contract and letting the other ride until EOD or obvious reversal. I posted a trade here last week with this exact problem: I made a nice profit on my one contract with a predetermined target but would have done much better just letting it ride into the close.
It seems like MTRs and PB's are best for letting at least part of your position run. Reversals are better for taking all or part off at a predetermined target. I don't know about breakouts since I don't trade them yet.
As long as our trader's equation looks good we should be okay. I'll probably forever be tweaking the best way to do this...