Option 1: Trailing stop

Once the price has moved in your favor, think about moving your stop loss to protect your profits and limit your trading risk.

When the price rises to $110, you can set a stop loss to $100 with take profit still at $140. The RR ratio has increased to 1:3.


When trailing stops, the most important aspect is choosing a sensible approach. There is no benefit in moving your stop loss too early and too close, which increases the risk of a stop-out during a price retracement.

Option 2: Move stop loss to breakeven

Moving your stop loss to breakeven is perhaps one of the most misunderstood concepts in trading. Traders believe they will have a “risk-free” trade because their stop loss is at the entry point.

You need to understand that, nothing is without risk in trading.


Open Profits - ie untapped profits are not necessarily profits, you can lose those profits. By moving your stop loss to breakeven, you run the risk of losing your unfinished profit! Especially when you move them too soon, the price will probably turn around, hitting the stop loss before moving in the right direction.

Therefore, we should avoid moving the breakeven stop loss if all you want to do is trade “no risk”. Instead, move the stop loss to breakeven when price has created support/resistance above/below the entry point, providing reasonable stops.

Option 3: Close profitable trade before hitting target

How often do you close your trades before the actual take profit order? If you are like most traders, you can do it anytime, anywhere.

Going back to the example above, if you close the trade at $110, you've reduced your initial RR from 2:1 to 1:1. This is awful! You have just cut the life of your account in half while taking on the same amount of risk.

The old saying "you can't go bankrupt if you take profits". This is an incorrect statement! If a trader frequently closes his trades too soon, his trading system will be “shrinkled”. You can turn a profitable system into a losing system by cutting your profits too soon.

Option 4: Stop loss before the price hits the stop loss

Stopping losses before the price hits a stop loss is something that traders don't do often. The reason is that once the price has gone against what you analyzed, you tend to get depressed. Once you're down, losing a little more doesn't seem like such a big deal.

Let's say a trader enters an order at $100. Accepting a stop loss at $95 instead of waiting for the price to hit a stop loss at $90 halved my potential loss.

In the previous example, taking profits too early can damage one's trading system, in this case, accepting losses and stopping losses early can improve your trading system.

“Learn to deal with losses. The most important thing in making money is not to let losses fall out of your control.” - Marty Schwartz.

Option 5: Insert an order while at a loss

This is something that should be avoided 99% of the time. While stuffing at a loss looks good in theory, it can destroy and wipe out an entire trading account.

The reason here is, the distance from the current price to the take profit is larger, and the risk is higher. Filling in on a loss doesn't really improve the situation because the trader currently has two positions and the price has to move a longer distance for the trader to take profits.

Besides, traders often lose focus when stuffing orders and forget their original trading ideas. They may close early when they break even, or worse, never close.

Option 6: Insert an order when the transaction is favorable

Opening a new position with the same stop loss and take profit, after the trade is favorable, will also reduce the life of a trading system because the RR of the second trade will be smaller than that of the first trade. first translation.

However, trading scalping can be a good strategy if it is done carefully and with a plan. Traders who add to a trade that are already profitable can end up losing much faster because the price only needs to reverse slightly to wipe out their profits.

This is a good strategy, but make sure you have experience in stuffing orders when the trade is going well.