We predict the outcome of a future price move; even so we do this with a high probability, we do not get the direction always right.
What do we do then?
Taking a stop-loss; however, our name derives from Never Stop Loss Trading and this was a bit lengthy. We teach multiple trade adjustment strategies for Stocks, Options, Futures, and FOREX.
So let me tell a story about a recent happening…click for the video.
Doing constant research, we are currently testing a market pressure indicator and like to trade preferably options on specifically formulated conditions (this opening pressure trade is still in an exploratory stage).
On June 28, our scanners picked PG to open with market pressure: We bought call option positions for next week’s options at 9:33 a.m. EST and paid $0.38/per share controlled.
TradeColors.com Chart at Trade Entry
The trade reverted and at 10:43 a.m. EDT and triggered our stop or adjustment level.
A decision had to be made and we prepare those decisions before we enter a trade, for easy execution (at any trade, you should have a plan-B):
A short credit spread was created: $0.50 wide and gave us a premium of $0.48.
How does this calculate up?
For more information: contact@NeverLossTrading.com or call: +1 866 455 4520.
Sign up for our Free Trading Tips, Reports, and Webinars...click here.
Good trading,
Thomas
www.NeverLossTrading.com
Disclaimer, Terms and Conditions, Privacy | Customer Support
What do we do then?
Taking a stop-loss; however, our name derives from Never Stop Loss Trading and this was a bit lengthy. We teach multiple trade adjustment strategies for Stocks, Options, Futures, and FOREX.
So let me tell a story about a recent happening…click for the video.
Doing constant research, we are currently testing a market pressure indicator and like to trade preferably options on specifically formulated conditions (this opening pressure trade is still in an exploratory stage).
On June 28, our scanners picked PG to open with market pressure: We bought call option positions for next week’s options at 9:33 a.m. EST and paid $0.38/per share controlled.
TradeColors.com Chart at Trade Entry
The trade reverted and at 10:43 a.m. EDT and triggered our stop or adjustment level.
A decision had to be made and we prepare those decisions before we enter a trade, for easy execution (at any trade, you should have a plan-B):
A short credit spread was created: $0.50 wide and gave us a premium of $0.48.
How does this calculate up?
- We invested $0.38 and this would have been our maximum loss.
- If we exited the trade at the stop level, a loss of $0.30 or 80% would need to be booked.
- We did not take the stop, changed the trade direction and received a premium for doing so: $0.48, giving us a potential return on investment of 26% and increasing the risk of the trade by $0.02 or by 5%.
- A day later, we could have closed the spread for a premium of $0.03, which we did not accept yet, however it would have turned a $0.30 loser into an immediate winner, just a day later, giving us back $0.45 for the originally invested $0.38: Turning a losing trade into a winner.
For more information: contact@NeverLossTrading.com or call: +1 866 455 4520.
Sign up for our Free Trading Tips, Reports, and Webinars...click here.
Good trading,
Thomas
www.NeverLossTrading.com
Disclaimer, Terms and Conditions, Privacy | Customer Support