tr4gedy
So tell me why my account should be blown up by now. Trading is about being able to trade either and both sides of the market in any type of market. Those that can do that are the most successful. It is about doing your homework, trading the charts, using your "feel" and picking your spots. It is about timing and conviction. It is about making a plan and sticking with the plan. Many use stops or trailing stops as part of their plan, I don't generally. Part of the plan should be a level to dump a bad trade or that you don't care where it goes you will hold it until expiration. Whatever the plan is, stick to it. You have to know when the play you make is a failure, such as buying ahead of big support but then support doesn't hold. That is a signal to get out.
I always have a plan and I always have a reason for entering a trade. My plan may have levels where I bail out of a trade but I don't do that regularly (although it would save me money sometimes!). I usually have a very good reason for my trades based on technicals, fundamentals and a feeling on the overall market. Even if I am loaded up with Puts or Calls I usually have some plays on the other side, not as a hedge but there are stocks that I think will buck the trend.
I'm a contrarian so I am usually bucking the trend on both sides. That is why I buy in "dips". I will buy a little ahead of where I think the stock is going (i.e. If PCLN is coming down and I think it is going to $1290 before it reverses I will buy calls at $1293ish and again as it goes lower). I usually buy 3 dips. I would rather be a little ahead of it and buy early and often than to miss it because it didn't hit my target. I don't like to chase and I very rarely will do it.
