Quote from bjdhawk:
yeah, i've got that pre-mature ejection issue....bids hit 2.45 on the 3750c with HOD at 2.5
left +165 on the table
that is the toughest part for everyone - I don't care who you are, or how long you have been trading, i.e. exits!
Look at what I did on DNA and MNX last two days - I nail entires all the time, and even when often early it works out. I have always had that ability.
But perfecting exit strategy is a lifelong quest like a surfer seeking the perfect wave.
In fact we all know that exit strategy mostly defines great trading, not entries.
need to remember:
1. scaling in/out
2. can immediately get back in (or look for PB to re-enter) and/or we can get into the underlying and/or we can roll into a different strike or month.
Most times I have done the aforesaid it has worked out well. In fact I think the hallmark of a really accomplished consistent trader is the ability to exit and then quickly note he was early/premature, and then get back in on the directional move/trend.
It is a goal of mine for the next 24 months to improve that aspect so that IF when we ring the register on a position coming off a great entry we don't merely exit and sit back counting chips as if that point of demarcation is/was some irreversible act that denotes the end of profit opportunity in said position. Rather we stay focused.
Obviously this requires the ability to ID a healthy trend within the time frame(s) you are trading.
In my case being a discretionary/intuitive/psychological (and often contrarian) trader -- as well as using KISS T/A - I have to rely on my gut feel. When I don't I miss out- when I do I make more. Its that simple with my style. For another trader (hawk) it may work differently.
