I'd be interested in hearing what your general exit strategies are for your trades. What's a good rule-of-thunb to use? Do you aim for a particular % gain or loss? Do you ever beat yourself up for potential gains you could have had if you'd just waited a couple of days or so?
Earlier this week I sold a June 17.5 call JPM - for about a 145% gain. I sold because I got a little scared of all the bad news coming out regarding the banking industry. Had I waited to sell until today, I would have made a lot more money - probably would have doubled my profit. I was real frustrated. But at the same time, I keep telling myself not to be greedy.
I heard this great statement on the Options Action show on CNBC: "The only thing worse than losing money is not taking profits". I think this should be my mantra - but I'm still kicking myself about this and a few oher trades I made. I'd appreciate your thoughts - thanks.
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When I miss out on taking some extra profits, I look at what happened and think about whether I could have predicted the continuing price rise. Usually, the answer is "no", in which case, I don't worry about it. No one has a crystal ball to predict random, irrational market moves, and no one gets the maximum possible gain on their trades.
ok so to answer your question now.
whenever you enter a trade, you should know these 3 things
1. where to get in
2. where to take profits
3. where to get out incase the market moves against you
dreaming about profits doesnt make you money, taking profits off the table does!
key rule - YOU DONT GET PAID FOR ENTERING TRADES, YOU GET PAID FOR EXITING THEM
so to answer your question, before you enter a trade you should set two specific price levels, a target price and a stop, one above and the other below current prices.
hope this helps!
DONT GET ATTACHED TO A STOCK!
just like that old torn up t-shirt you had since you were 10 and still wear it today, if a trade is going good, or killing your account GET RID OF IT and move on
What's your exit strategy?
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No, I don't aim for a particular %. My rule is this: If I think it's (still) going up, I hold. If I think it's going down, I sell. Irrespective of what my % gain or loss is. If I'm not sure whether it's going up or down, I might just sell some of the position.KarmanGhia said: I'd be interested in hearing what your general exit strategies are for your trades. What's a good rule-of-thunb to use? Do you aim for a particular % gain or loss? Do you ever beat yourself up for potential gains you could have had if you'd just waited a couple of days or so?
When I miss out on taking some extra profits, I look at what happened and think about whether I could have predicted the continuing price rise. Usually, the answer is "no", in which case, I don't worry about it. No one has a crystal ball to predict random, irrational market moves, and no one gets the maximum possible gain on their trades.
im very glad you asked this question. why? because any clown can buy a lottery ticket, but exits seperate winners from losers. catch my drift?KarmanGhia said: I'd be interested in hearing what your general exit strategies are for your trades. What's a good rule-of-thunb to use? Do you aim for a particular % gain or loss? Do you ever beat yourself up for potential gains you could have had if you'd just waited a couple of days or so?
Earlier this week I sold a June 17.5 call JPM - for about a 145% gain. I sold because I got a little scared of all the bad news coming out regarding the banking industry. Had I waited to sell until today, I would have made a lot more money - probably would have doubled my profit. I was real frustrated. But at the same time, I keep telling myself not to be greedy.
I heard this great statement on the Options Action show on CNBC: "The only thing worse than losing money is not taking profits". I think this should be my mantra - but I'm still kicking myself about this and a few oher trades I made. I'd appreciate your thoughts - thanks.
ok so to answer your question now.
whenever you enter a trade, you should know these 3 things
1. where to get in
2. where to take profits
3. where to get out incase the market moves against you
dreaming about profits doesnt make you money, taking profits off the table does!
key rule - YOU DONT GET PAID FOR ENTERING TRADES, YOU GET PAID FOR EXITING THEM
so to answer your question, before you enter a trade you should set two specific price levels, a target price and a stop, one above and the other below current prices.
hope this helps!
EXIT STOCKs
I FEEL YOUR PAIN ITS ITS HARDER TO SELL THAN TO BUYS WHEN I GET A 20% I REALLY THINK HARD ABOUR SELLING
I FEEL YOUR PAIN ITS ITS HARDER TO SELL THAN TO BUYS WHEN I GET A 20% I REALLY THINK HARD ABOUR SELLING
this is a habit new traders need to rid themselves ofandrew said: EXIT STOCKs
I FEEL YOUR PAIN ITS ITS HARDER TO SELL THAN TO BUYS WHEN I GET A 20% I REALLY THINK HARD ABOUR SELLING
DONT GET ATTACHED TO A STOCK!
just like that old torn up t-shirt you had since you were 10 and still wear it today, if a trade is going good, or killing your account GET RID OF IT and move on
It is much better to miss the next move up and take some profits then to not take profits and be part of the next move down
Displaying all 6 forum posts
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