web analytics

Marketlife Ep 33 – Trade management: decisions and tradeoffs

Podcast-Cover300So much emphasis is placed on where to get into a trade, entry signals, entry patterns… but the decisions we make after we are in the trade are at least as important (and maybe far more important) for overall profitability. In this episode, I dig into some of the ideas, decisions, and tradeoffs that are involved in these decisions, and leave you with a few interesting ideas that might challenge you to look at the problem in some new ways.

This podcast is a departure from recent episodes because it digs more deeply into details of trading topics, and is aimed at the developing trader who is well on his or her way to having a working trading plan.

Here are the show notes:

Trade management

  • What we do after we get into the trade
  • Maybe more important than entry to profitability
    • Entry
    • Exit
    • Position sizing
  • What to consider?
    • Initial stop
    • Initial target
  • Active management
    • Moving stop
      • Trailing stop
    • Moving target
    • Partial exits
      • At profit
      • At loss
    • Adding
      • As trade moves in your favor
      • As trade moves against you
    • Pyramiding (right and wrong)
  • Most important point is that every decision has a consequence.
  • Two interesting ideas:
    • Can you make money with random entries?
    • Work with a partner—divide and conquer

If you enjoy the podcast, one of the very best things you can do for me is to leave me a review on iTunes here.

Also, if you like the music for this podcast, then be sure to check out Brian Ashley Jones, my friend, and a fantastic singer-songwriter.

Enjoy the show:


Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.
Close Menu