Yip:
Since an opinion was being expressed I do no think you should restate the mantra as though it is the true way or blatantly obvious that all other views become useless.
When I am in a position I personally keep the amount of credit in mind and current P & L in front when debating on whether to close, adjust or hedge.
For example, a $2.00 credit that can now be bought back for $0.35 is relevant to me in making a decision when analyzing the market outlook. even if I feel the market will keep moving in my direction I am more inclined to take the profit now and not worry about being wrong. I might think differently if I initially sold the spread for $0.50. If I feel the market is going to move in my direction then I would hold on. For me it IS relevant when analyzing the current market conditions because I could be wrong.
Also, the amount of credit is very important to me when deciding whether to hedge or not. If I took in a nice size credit based on my own personal opinion, I am more likely to put on a partial hedge since I feel I can afford to give up some credit versus lower credit spreads (in % terms, not actual dollar value).
My point is that there are times when I personally take into account the current P&L or credit received as ONE part of my analysis.
I doubt the point was to say that everyone should forget about considering the initial credit or current P&L when making a decision since it was an opinion expressed.
I want to make sure ideas are discussed as opposed to opinions being established as the only right way. Each person has to trade the way that matches their trading style and take into consideration whatever they feel is relevant in their decision making process.
The only thing obvious to me is that we all have different approaches and right or wrong is a subjective matter based on personal style.
Since an opinion was being expressed I do no think you should restate the mantra as though it is the true way or blatantly obvious that all other views become useless.
When I am in a position I personally keep the amount of credit in mind and current P & L in front when debating on whether to close, adjust or hedge.
For example, a $2.00 credit that can now be bought back for $0.35 is relevant to me in making a decision when analyzing the market outlook. even if I feel the market will keep moving in my direction I am more inclined to take the profit now and not worry about being wrong. I might think differently if I initially sold the spread for $0.50. If I feel the market is going to move in my direction then I would hold on. For me it IS relevant when analyzing the current market conditions because I could be wrong.
Also, the amount of credit is very important to me when deciding whether to hedge or not. If I took in a nice size credit based on my own personal opinion, I am more likely to put on a partial hedge since I feel I can afford to give up some credit versus lower credit spreads (in % terms, not actual dollar value).
My point is that there are times when I personally take into account the current P&L or credit received as ONE part of my analysis.
I doubt the point was to say that everyone should forget about considering the initial credit or current P&L when making a decision since it was an opinion expressed.
I want to make sure ideas are discussed as opposed to opinions being established as the only right way. Each person has to trade the way that matches their trading style and take into consideration whatever they feel is relevant in their decision making process.
The only thing obvious to me is that we all have different approaches and right or wrong is a subjective matter based on personal style.
