Trading Psychology To Be A Top Trader | OVTLYR UNIVERSITY Lesson 7
Managing a Trade Once You’re In
Introduction
Entering a trade is only half the battle. Knowing what to do after you're in is what separates amateurs from professionals. This lesson breaks down how to manage an open position step by step, whether it’s working in your favor or moving against you.
1. Your Job Isn’t Done After the Entry
● Entering a trade is not a win. It’s just the start.
● You need a plan for:
○ What happens if it goes in your favor
○ What happens if it goes against you
2. How to Handle a Trade That Goes in Your Favor
A. Continue Watching Structure
● Confirm the stock is continuing to make higher highs and higher lows (bullish).
● As long as structure stays intact, stay in the trade.
B. Use the Moving Averages
● Watch for price to stay above your moving averages (10 EMA, 20 EMA).
● If price dips below and can’t recover, consider trimming or exiting.
C. Pay Attention to Candle Behavior
● Strong green candles with range = strength.
● Small bodies, upper wicks, or reversal candles = signs of weakness.
D. Look Left for Resistance
● If price is approaching previous resistance (e.g., past highs), be cautious.
● Watch how the stock reacts there.
E. Use Volume as Confirmation
● Rising price on rising volume = healthy move.
● Weak volume on breakout = warning.
3. Locking in Profits
● Don’t sell too early just because you’re green.
● Use trailing stops or structure-based exits to stay in the trend.
● Scale out partial profits only when the chart gives you a reason.
4. How to Handle a Trade That Goes Against You
A. Stick to Your Stop
● Predetermined stop loss must be respected.
● Usually based on structure or ATR.
● Don’t widen your stop because “it might come back.”
B. No Averaging Down
● Never add to a losing position.
● If a trade doesn’t work, exit and move on.
C. Review the Trade
● Did you break your rules?
● Was the market or sector no longer aligned?
5. Your Job Is to Manage Risk and Let Winners Win
● Cut losers quickly.
● Let winners run until the chart says otherwise.
● Stay calm and follow the plan.
This concludes Lesson 7. You now know exactly how to manage a trade once you’re in, from riding a trend to cutting a loser without hesitation. In Lesson 8, you’ll go deep into trading psychology and how to develop the discipline required to execute this consistently.
© Copyright 2025 OVTLYR - All rights reserved.
5830 Granite Pkwy, Suite #100, Plano, TX 75024, USA
Contact now at support@ovtlyr.com