My plan when I get to 2 contracts I will take 1 off at a fixed target amount and my stop will then be moved to break even. I will then watch price action and get out when it tells me to.
This will choke off your profits when you are in a winner whilst allowing to take full loss when you are wrong.
This is actually a fairly common strategy to help with limiting losses and reducing volatility. While it is true that only half of the position will exploit large moves, if and when they do occur, the strategy may allow for more consistent profitability. It may help him stick with a position that moves in his favor longer than if he holds the full position, and that may help him from a psychological perspective. To each his own.
If not able to hold the full position, then he would be wildly overextended with 2 contracts. One must never be in a situation where a position would need to be pulled in order to smooth an equity curve or be consistently profitable. What would be best is to stay with one contract and let it run, while only exposing self to a full loss on 1 contract instead of 2.
Yes, if he is nervous about trading multiple contracts, then he shouldn't. However, many professionals employ this sort of tactic to smooth out the equity curve. Some trend followers will employ counter trend strategies to the effect, etc. Ultimately, I see no reason to argue against the tactic. There is nothing wrong with his approach. If he can be profitable this way, then it works for him, and that is all that matters. There are thousands of ways to skin a cat in this business.