Risk and trade management
Moving the stop to break-even
Moving the stop loss to the entry price once the trade is in profit, so the worst case becomes zero.
Why it works
It removes the risk of a winning trade turning into a loss. Done too early, it turns good trades into scratches.
How to use it
A common rule: move to break-even once price reaches +1R or breaks the next structure level in your favour.
The typical mistake
Moving to break-even after 5 pips in profit and getting stopped right before the move you predicted.
FAQ
What is Break-even in trading?
Moving the stop loss to the entry price once the trade is in profit, so the worst case becomes zero.
How do you trade Break-even?
A common rule: move to break-even once price reaches +1R or breaks the next structure level in your favour.