# Trade Management > Trade management covers everything after entry: stops, partial exits, adding, news and emotions. Learn active and passive styles and a simple management plan. Source: https://learn.tradelabsai.com/position-management/trade-management/ Track: Position Management · Level: Intermediate · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Trade Management", https://learn.tradelabsai.com/position-management/trade-management/ Trade management is everything you do with a position between entry and exit. It includes moving stops, taking partial profits, adding to winners, reacting to news and handling your own emotions while money is on the line. Good management can turn an average entry into a solid result; poor management can turn a great entry into a loss. The best management is mostly decided before the trade begins. ## Passive vs active management | Style | Description | Suits | Risk | |---|---|---|---| | Passive ("set and forget") | Place stop and target with the entry, then do nothing until one is hit | Busy traders, mechanical strategies | Ignores new information | | Active | Adjust stops, take partials, add or reduce based on price action | Experienced discretionary traders | Emotional interference, over management | | Rule based active | Adjust only according to written rules, such as move stop to breakeven at +1R | Most traders | Requires discipline to follow rules | Many traders do best with rule based management: active decisions, but defined in advance. ## Key management decisions 1. **Initial stop:** where you are wrong. See [Stop Loss Strategies](https://learn.tradelabsai.com/risk/stop-loss-strategies/). 2. **When to reduce risk:** for example, moving the stop to breakeven after a set gain. See [Moving Your Stop: Breakeven and Trailing Stops](https://learn.tradelabsai.com/position-management/breakeven-stop/). 3. **When to take partial profits.** See [Scaling Out and Partial Profits](https://learn.tradelabsai.com/position-management/scaling-out-and-partial-profits/). 4. **When to add.** See [Scaling In and Pyramiding](https://learn.tradelabsai.com/position-management/scaling-in-and-pyramiding/). 5. **How to trail the stop** on the remainder. See [Trailing Stop Orders](https://learn.tradelabsai.com/orders/trailing-stop-orders/). 6. **When to give up on time.** See [Time Stops](https://learn.tradelabsai.com/position-management/time-stops/). 7. **What to do around news,** such as reducing size before earnings. ## A sample management plan **Example: Rules for a swing trade** Entry at $100 with a stop at $96 (1R = $4). - Until +1R: do nothing; the stop stays at $96. - At +1R ($104): move the stop to $99, keeping a small risk of 0.25R to avoid breakeven stops on normal noise. - At +2R ($108): sell one third. - Above +2R: trail the stop under each new daily swing low. - Earnings in 5 days: if still open, sell another third the day before and keep a stop on the rest. - No progress after 10 days: close the trade. ## Over management Constantly fiddling with stops and targets is one of the most common ways to damage a good strategy. Signs of over management: - Moving stops closer on every small pullback and getting stopped out of winners. - Taking profit at the first sign of red. - Checking the position every few minutes on a multi day trade. Compare your managed results with what the original plan would have produced. If the plan does better, manage less. See [Post-Trade Analysis](https://learn.tradelabsai.com/start-here/post-trade-analysis/). ## Managing emotions during trades - **Reduce screen time** for longer timeframe trades; frequent checking increases anxiety and impulsive decisions. - **Use alerts** instead of watching every tick. - **Size so you can sleep:** if a position keeps you awake, it is too large. See [Position Sizing](https://learn.tradelabsai.com/risk/position-sizing/). - **Write down the plan** so decisions are executions of a script rather than in the moment judgements. See [Emotional Control](https://learn.tradelabsai.com/psychology/emotional-control/). ## News and events during trades Before entering, check for scheduled events during the planned holding period. Decide in advance whether to hold, reduce or exit before them. Unscheduled news may require judgement, but your default should still follow your plan. See [Trading Economic Releases](https://learn.tradelabsai.com/macro/trading-economic-releases/). ## Common mistakes - **Managing based on feelings** instead of rules. - **Moving stops further away** to avoid a loss. - **Cutting winners short** to lock in small gains. - **Never reviewing** whether your management adds or subtracts value. Managing a trade often means cutting size as conditions change; [Reducing a Position](https://learn.tradelabsai.com/position-management/reducing-a-position/) covers when and how to do it. ## Frequently asked questions ### What is trade management? The decisions made after entering a trade, including stop adjustments, partial exits, adding to positions and handling news, until the trade is closed. ### Is it better to set and forget or actively manage? It depends on the strategy and trader. Rule based active management combines the benefits of both: adjustments happen, but only according to rules set in advance. ### How do I know if I am over managing trades? Compare your actual results with what your original stop and target would have produced. If the original plan does better, you are likely over managing. Next, learn how to add to winning positions with [Scaling In and Pyramiding](https://learn.tradelabsai.com/position-management/scaling-in-and-pyramiding/). ## Continue learning - Next lesson: [Scaling In and Pyramiding](https://learn.tradelabsai.com/position-management/scaling-in-and-pyramiding/) - Previous lesson: [Re-Entry](https://learn.tradelabsai.com/position-management/re-entry/) - Related: [Re-Entry](https://learn.tradelabsai.com/position-management/re-entry/): Re-entering after being stopped out can be smart or emotional. Learn valid re-entry rules, how to avoid revenge trades and how to size second attempts. - Related: [Exit Mechanics](https://learn.tradelabsai.com/position-management/exit-mechanics/): Exits decide most of your results. Learn the main exit types: stops, targets, trailing stops, time exits and signal exits, and how to combine them in a plan. - Related: [Moving Your Stop: Breakeven and Trailing Stops](https://learn.tradelabsai.com/position-management/breakeven-stop/): Moving your stop to breakeven removes risk but can cut winners early. Learn when to move stops, alternatives like partial breakeven, and rules that work. - Related: [Scaling Out and Partial Profits](https://learn.tradelabsai.com/position-management/scaling-out-and-partial-profits/): Scaling out means closing a position in parts at different prices. Learn common partial profit methods, the effect on expectancy and when it helps. - Related: [Scaling In and Pyramiding](https://learn.tradelabsai.com/position-management/scaling-in-and-pyramiding/): Scaling in builds a position in parts; pyramiding adds to winners as they move your way. Learn safe pyramiding rules, examples and why averaging down differs. - Related: [Trailing Stop Orders](https://learn.tradelabsai.com/orders/trailing-stop-orders/): A trailing stop follows the price by a set amount or percentage and only moves in your favour. Learn how it works, how to set the distance and common pitfalls. - Related: [Time Stops](https://learn.tradelabsai.com/position-management/time-stops/): A time stop closes a trade that has not worked within a set period. Learn how to set time limits for each strategy and why they improve results.