My May EBAY spread

I don't see a contradiction.

After you open your position stick with the plan.

When you close an old position and open another one, make a new assessment and a new trading plan. Adjusting means closing the old one and opening a new one.
Quote from daddy'sboy:

cnms2 wrote: "Once you opened your trade execute your trading plan, and resist any temptation to change it."
Cache Landing wrote: "Whenever you adjust or close a position, it should be based on your current view of the underlying"
So which is it? Stick to your plan/stop losses etc. or fiddle with the position depending on your "new" view of the underlying?
daddy's boy
More...
 
Dang. I just thought of something.

The EBAY trade was supposed to be a learning experience, which it was in a way. But looking back I could have done better. I should have closed 5 contracts and left 5 open to expiration. That way I would get the experience of have ITM contracts expire.
 
Quote from daddy'sboy:

cnms2 wrote: "Once you opened your trade execute your trading plan, and resist any temptation to change it."
Cache Landing wrote: "Whenever you adjust or close a position, it should be based on your current view of the underlying"
So which is it? Stick to your plan/stop losses etc. or fiddle with the position depending on your "new" view of the underlying?
daddy's boy
More...
No real conflict. Your "trading plan" could include fiddling depending on your new view.

Many times my initial plan is to adjust depending on new conditions. Although with some defined limited loss positions, my plan says do nothing until expiration.

Don
 
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