Position Management
How to manage your open positions and monitor P&L effectively
Documentation
Understanding Position Management
Position management is the art and science of monitoring, adjusting, and closing your trading positions to maximize profits and minimize losses. It's one of the most critical skills for successful trading on Cafe Trading.
Monitoring
Continuously track your positions, P&L, and market conditions to make informed decisions.
Adjusting
Modify stop-losses, take-profits, and position sizes based on market movements.
Closing
Know when and how to exit positions to lock in profits or cut losses.
Monitoring Your Positions
Key Metrics to Track
Unrealized P&L
Current profit or loss on open positions.
- • Updates in real-time
- • Shows potential gains/losses
- • Helps with exit timing
Margin Ratio
Your account equity vs. used margin.
- • Indicates liquidation risk
- • Should stay above 200%
- • Critical for position safety
Position Size
Total value of your open positions.
- • Affects risk exposure
- • Should align with strategy
- • Can be adjusted if needed
Entry Price
Average price at which you entered.
- • Reference for P&L calculation
- • Important for exit decisions
- • Changes with position scaling
Portfolio Overview
The Cafe Trading portfolio panel provides a comprehensive view of all your positions:
- • Open Positions: All active trades with current P&L
- • Order History: Past trades and their outcomes
- • Account Balance: Available funds and margin usage
- • Performance Metrics: Win rate, average profit/loss
- • Risk Metrics: Total exposure and margin ratio
Position Adjustment Strategies
Scaling In and Out
Gradually increase or decrease position size based on market conditions.
Scaling In (Adding)
- • Add to winning positions
- • Use pullbacks in trends
- • Maintain risk management
- • Don't average down losses
Scaling Out (Reducing)
- • Take partial profits at targets
- • Reduce size in uncertainty
- • Lock in gains gradually
- • Keep some position for trends
Stop-Loss Management
Dynamic adjustment of stop-loss levels as positions move in your favor.
Trailing Stops
- • Follow price movements
- • Lock in profits automatically
- • Adjust based on volatility
Break-Even Stops
- • Move to entry price
- • Eliminate risk after gains
- • Psychological comfort
Technical Stops
- • Based on support/resistance
- • Use chart patterns
- • Respect market structure
Take-Profit Strategies
Different approaches to securing profits from successful trades.
Fixed Targets
- • Set specific price levels
- • Based on technical analysis
- • Risk/reward ratios
- • Disciplined approach
Partial Profits
- • Take profits in stages
- • 25%, 50%, 75% levels
- • Let winners run
- • Reduce position risk
When to Close Positions
Profit-Taking Scenarios
- • Target price reached
- • Technical resistance hit
- • Risk/reward achieved
- • Market conditions change
- • Time-based exits
- • Portfolio rebalancing needs
Loss-Cutting Scenarios
- • Stop-loss triggered
- • Trade thesis invalidated
- • Unexpected news/events
- • Margin call approaching
- • Risk tolerance exceeded
- • Better opportunities available
Common Position Management Mistakes
Moving Stop-Losses Against You
Never move your stop-loss further away from your entry to avoid being stopped out. This increases your risk and often leads to larger losses.
Letting Emotions Drive Decisions
Fear and greed can cause you to close profitable positions too early or hold losing positions too long. Stick to your predetermined plan.
Over-Managing Positions
Constantly adjusting positions based on minor price movements can hurt performance. Give your trades room to breathe.
Ignoring Risk Management
Failing to use stop-losses or position sizing rules can lead to catastrophic losses. Always prioritize capital preservation.
💡 Pro Position Management Tips
- • Plan your exit strategy before entering a trade
- • Use alerts to monitor positions without constant watching
- • Keep a trading journal to track position management decisions
- • Review closed positions to learn from both wins and losses
- • Consider market hours and liquidity when managing positions
- • Don't let one position dominate your entire portfolio
- • Practice position management with small sizes first