When do you admit you are wrong?

[Baozi]

All the experienced options traders seem to agree on the fact that putting hard stops on options is not optimal, and usually you should get out when your view on the underlying changes yada yada yada...

And so we get down to the main question: when do you admit to yourself that you are wrong? When does your view on the underlying change? Personally I think this is one of the most challenging things to do in trading, especially if you are trying to be systematic.

I usually determine a likely distribution curve for the underlying, and if it shifts out of my profit zone by more than a certain % I will get out. Because of this, however, I slapped myself in the face more than once, as the distribution one week later was back again in the profit zone but I had already closed out the spread.

What about you guys? How do you decide that it's time to move on?

 

[murray t turtle]

All the experienced options traders seem to agree on the fact that putting hard stops on options is not optimal, and usually you should get out when your view on the underlying changes yada yada yada...

And so we get down to the main question: when do you admit to yourself that you are wrong? When does your view on the underlying change? Personally I think this is one of the most challenging things to do in trading, especially if you are trying to be systematic.

I usually determine a likely distribution curve for the underlying, and if it shifts out of my profit zone by more than a certain % I will get out. Because of this, however, I slapped myself in the face more than once, as the distribution one week later was back again in the profit zone but I had already closed out the spread.

What about you guys? How do you decide that it's time to move on?

%%
200 day moving average + 10 years.........................................................But on a trade with leverage,get out late or early?? Depends on dividends paid.

 

[SimpleMeLike]

All the experienced options traders seem to agree on the fact that putting hard stops on options is not optimal, and usually you should get out when your view on the underlying changes yada yada yada...

And so we get down to the main question: when do you admit to yourself that you are wrong? When does your view on the underlying change? Personally I think this is one of the most challenging things to do in trading, especially if you are trying to be systematic.

I usually determine a likely distribution curve for the underlying, and if it shifts out of my profit zone by more than a certain % I will get out. Because of this, however, I slapped myself in the face more than once, as the distribution one week later was back again in the profit zone but I had already closed out the spread.

What about you guys? How do you decide that it's time to move on?

Baozi,

I always use a protective stop loss on any trade. We are traders we can not be 100% right all the time.

 

[Peter8519]

If it's wrong... it's wrong(sell too late or early). There is nothing to argue with the market. Just accept it and move on. Never accept wrong is a problem.

 

[nooby_mcnoob]

All the experienced options traders seem to agree on the fact that putting hard stops on options is not optimal,

Where did you see this?

 

[Turveyd]

On my death bed, I will look back and only then can I decide if I was ever wrong at that point, 1 year later, might change but as it's my last chance to assess being wrong I shall, likely be NO 100% Perfect all my life!! Boom!!

Market does what market does, if it's not going your way, your not wrong, as no way to no, just exit and flip sides simples.

 

[zghorner]

i cant speak for experienced traders but as an inexperienced options trader i prefer not to have a stop. Usually exit my losers immediately after uttering the words "fuck this".

 

[traider]

When my broker margin calls me

 

[nooby_mcnoob]

i cant speak for experienced traders but as an inexperienced options trader i prefer not to have a stop. Usually exit my losers immediately after uttering the words "fuck this".

Is that right before it goes the other way?

 

[taowave]

Need a little more input.

Are we talking strictly directional,or are you including vol/gamma.i.e delta neutral trading?

Are we only referring to long gamma/direction and not short gamma trades??

Are you including spreads,flys etc??

All the experienced options traders seem to agree on the fact that putting hard stops on options is not optimal, and usually you should get out when your view on the underlying changes yada yada yada...

And so we get down to the main question: when do you admit to yourself that you are wrong? When does your view on the underlying change? Personally I think this is one of the most challenging things to do in trading, especially if you are trying to be systematic.

I usually determine a likely distribution curve for the underlying, and if it shifts out of my profit zone by more than a certain % I will get out. Because of this, however, I slapped myself in the face more than once, as the distribution one week later was back again in the profit zone but I had already closed out the spread.

What about you guys? How do you decide that it's time to move on?