Replies to post #27835 on OPTIONS TRADERS CO-OP

[royg1927]

How did the trader at this desk "know"?

Guess? Feel? Hope?

Not any of those. Well, he did not "know" in the literal sense, but he was depending on trade and indicator experience. Not all turn out to be correct. Every entry needs to be protected by an escape tactic to minimize the loss that will happen on some percentage of trades. Let no trade result in a big loss. It can be done.