Name the stop, require a 1:3 reward, then scale out half

Judge the position by the exit

Money management is framed as exit skill. A position is judged by whether it can be closed at a gain or a small loss, not by how clever the entry looks.

Name the stop before entry

The stop-loss is a pre-entry exit price that bounds the loss if the position fails, chosen before the order is placed and kept through the hold.

The stop price is to be known before entry so the worst-case loss can be inspected and the exit is not improvised if the position fails.

Discard a weak reward multiple

The risk-reward ratio is the planned loss distance versus the planned gain distance, used as a yes-or-no filter before a setup is allowed to become a trade.

A setup with a one-point stop below entry and a one-and-a-half-point upside target produces a 1:1.5 risk-reward multiple and is to be discarded. A planned 1:3 risk-reward multiple is the stated screen. Applying it rejects more setups even when the chart looks strong.

Keep one trade inside 5% of capital

An account-risk-cap is a ceiling on how much of total equity one trade may lose if the planned stop is hit. A single trade is not to risk more than 5% of total account capital, and the stop must be sized so a hit stays inside that bound.

Remove half after a move in favor

A scale-out-position rule reduces a working position by a stated fraction at a preplanned profit point while the remainder stays under the original plan.

After a position moves in favor, half the size is to be removed at a prechosen level so a partial gain is booked, costs are covered, and the remaining half can be held with less fear.

Honor the stop instead of adding size

Averaging-down, adding size to a losing position to lower average cost, is prohibited. The original stop is to be taken and attention moved to a later setup.

Waiting for a losing position to recover is treated as a destructive habit, with more such holds expected to worsen than to return to profit.