So this week I put on a 5 day calendar trade on SPX. I got out 2 days before expiration because the market threatened one side of the position. Cost of trade: 2.9K. Resulting profit at get out: .54K (after commissions)
I keep doing this. Because I fear taking ANY loss whatsoever I get out at a low or high and the market reverses and everything is fine. Day of expiration today...strike was 2180 and spx is 2181...could have made 4K!!! Would have made my profit target for the month 2 weeks early. Now I'm in a pinch. I need to be willing to take some sort of loss. Otherwise I can't make the big bucks...can't make my profit targets, and will continue to be mediocre. After all what's the real risk: That the maximum value of the trade will be lost if MKT makes a massive move. Not letting trade run to get to real profits is playing with fire it seems. Sooner or later massive move will happen!
STOP BEING A CHICKEN DUDE. Be willing to take a 25% LOSS. Set limit orders to take the loss automatically. Your human judgement and fears just get in the way!!!
This has happened far too frequently. Because of not willing to lose I've missed out on tens of thousands of dollars in NET potential gains. I just have to recognize that this fear is irrational and suck it up, trade with what history tells me.
From Now On. Limited Maximum risk, Non-interventionalist weekly strategies automatically closed out for a loss if it gets to that point. Good luck!
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