Another trading rule to live by.
Do not take more than a 10% loss on any short term stock trade.
Do not hold a short term trade into becoming a long term trade and taking a big loss.
This is what happens to many traders.
You will not be a successful trader doing this.
Conversation
Replying to
Do you trade options? What do you think about trading stop loss on options?
4
Replying to
I think you have to be a bit more flexible with SL’s when trading options, but definitely great advice. I’ve burned myself badly by holding what was meant to be a short term trade hoping for recovery even though my thesis was disproved.
5
2