Multi-Leg OPTION Trade Ideas --Bull/Bear -- Let's Discuss

Quote from rayc99:

I have to remind myself to let the winners run, and to cut my losses. As strange as it seems, anyone who trades knows it is easier to do the opposite! It's a psychological battle
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You want to make it easier for yourself and get over the pathological battle?

1) Ignore the price you paid for the trade

2) Ignore whether it's a profit or loss

3) Make all decisions based on one factor only: DO YOU WANT TO OWN THE POSITION AT TODAY'S PRICE. IF 'YES' KEEP IT. IF 'NO' SELL IT.

I doubt I can convince you (or most people) of the merits of this trading philosophy.

If you expect to make money as a directional trader, you want to own positions that you believe will work today and going forward. Whether they worked yesterday is not important.

Mark
 
Quote from dagnyt:

You want to make it easier for yourself and get over the pathological battle?

1) Ignore the price you paid for the trade

2) Ignore whether it's a profit or loss

3) Make all decisions based on one factor only: DO YOU WANT TO OWN THE POSITION AT TODAY'S PRICE. IF 'YES' KEEP IT. IF 'NO' SELL IT.

I doubt I can convince you (or most people) of the merits of this trading philosophy.

If you expect to make money as a directional trader, you want to own positions that you believe will work today and going forward. Whether they worked yesterday is not important.

Mark
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Just my 2 bobs worth,
The market becomes your stop, with the caveat -where in a normal market at least, the position needs to be set up in such a way that your loss should not (no guarantees)exceed the maximum you have allowed when calculating RR.

Regards

Johno
 
Good comments Mark and Johno. Thanks!

Absolutely logical, and I agree.

Nonetheless, the psychological battle is the real battle for me.

I think that "Position Sizing," without a doubt, is one of the most important decisions when taking a trade; which is what I think you were getting at Johno.

Again, one can have the theory down cold; it's the application of the theory, if we are being honest, that is tested on an ongoing basis because we are human! Anyway, that's my excuse!
 
Back in POT...re-entered the trade at 2.30 credit.

Just missed an entry on INTC, one of my my favs. Right, idea, bad timing. Woulda, coulda, shoulda ....next........

At least the Red Sox will have home field advantage again!
 
I guess I am TRADING (rather than holding or smoking) POT!

Out again! 1.50 for $480 profit (cum now $690, which is about half the goal to Aug 22). All occurred within 5 days, vs 40 days. I suspect I will be back in POT on a pullback.

Everything up today. I am net long, so doing ok. SPY PUTS (insurance) offsetting some of the gains.

Back to the markets......
 
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