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InvestCEO with Kyle Henris

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Stop Losses
Hi All, does anyone here advocate for moving stop losses up to the breakeven point if the trade has moved fairly significantly in your favor. Say for example, the trade has moved to 60% of the profit target, would it make sense to then at least move the stop up to breakeven? As an extension of this idea, the stop could even be moved to a guaranteed profit but then there's a greater risk of it getting hit before reaching the full profit target.
2 likes • Jul '25
I do on my eval accounts, but not on PA accounts. It's mainly due to Apex's rules. I can take a bigger trade if I remove the possibility it'll get close to the 2:1, then drop to the stop and use up a big chunk of the trailing threshold. Usually I set an alert 2/3 the way to the TP, then move the stop 1/3 the way into profit when it hits 3/4 to the TP. I haven't had many stop out early, and the bigger trades get me through a one-day pass without resetting. Also, since I'm there looking at it, if it's about to hit the 2:1 TP with a lot of momentum, I'll move the TP up to 4:1 or better and move the stop to the old 2:1 TP position. Then I'll follow it with a tight trailing stop as it continues to climb. Worst case it's the 2:1 win, but I've stretched a couple into a 4:1 and even a 5:1 this week. My PA accounts are well clear of the trailing threshold, so I just trade those as Kyle's classes suggest. I setup the 2:1 trade with 1% of the account, find something else to do, and don't look at it again until it closes. In the long run I think it's more profitable and much less stress.
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David Smith
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@david-smith-2515
Investor and corporate executive

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Joined May 19, 2025
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