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Trade Adjustments



Tightening it up. As you know, I have been displeased with the win loss ratio. While it is a small sample when compared to the tens of thousands of trades I have taken in my career, I am always examining when I notice data that is outside of my historical performance. For sure the earnings plays of June affected the ratio to the negative and I have remedied that. However, in my review, I have found that there are two things that could've made losses smaller and protected profits - this supports the first goal of trading - protect capital. What I Found While 100% return on a trade idea is my minimum, I am also cognizant that you always have to take what the market gives. Sometimes, the market will strongly trend and sometimes it doesn't. When I say strongly trend is that a stock will move in a direction and continue. I am not seeing that and while this makes for a great shorter term environment, it is not giving 100% on trades. Instead of stocks picking a trend and then buying coming in, or selling for short positions, it is doing the opposite - initial trends are reversed at some point for a large degree of trades. Rallies are sold and dips are bought. Now, this makes options trading a bit more challeging. I have watched too many positions of mine go to profits and then reverse. I am making an adjustment to fix this. The Changes First Change is this: Buy no less than even number of contracts. Second Change: At 25% profit - prepare to sell half and then put a hard stop on the balance at BREAKEVEN. I did NOT say sell automatically - I am going to get ready to sell half at +25% and then watch the daily - if price continues to go in the thesis direction, I hold AND sell half at +40% to +50% profit - no questions asked. I will still hold half for a trend continuance. However, if price reverses on the daily, I will sell ALL. I have been holding as long as the trend is still favorable to my trade - now the first day there is a reversal, I am out. I can still get a stick save but since my entire trading is based on catching trends, I do not want to extend my risk of time by holding for another reversal back to my favor. A trend reversal on the daily and I am out. What will qualify for a trend reversal is a HCD or LCD but at no time will I let a winner turn into a loser. I believe this will lessen the stop amount, lessen the time risk and protect profits and make sure I get paid. While I am pleased with the overall results tbh, I am not pleased enough. I expect more from my trading. And I will get it. theBoss





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