As traders, we are always excited when our options trading system or program produces a winning trade. But this poses a dilemma. Do you hold a winning call option trade for further upside profit potential or do you take profits in case the stock or ETF declines in price with the possibility of a profitable options trade turning into a loss?
I’m sure most of us have closed out a winning trade only to see the underlying stock or ETF continue to rally knowing that we left profits on the table. We also know from experience that it is challenging to watch a winning trade develop into a losing trade. This is very hard on your psyche as a trader and can help you lose confidence in your ability to be a successful trader.
In this video learn how to solve this dilemma with their technique for protecting profits and at the same time participating in any further upside profit potential.
This technique is simple to implement and once it is in place you can forget about the trade — no need to monitor the markets or world events. Bad earnings reports don’t matter. A severe selloff in the underlying stock or ETF actually produces more profits with this technique. You can place the trade and take a vacation!
The recent market correction has triggered a lot of stop-loss orders for both stock and options positions. Stop loss orders are necessary if you want practice sound portfolio management. It is essential to exit losing trades before they develop into large losses which can devastate your portfolio.
Learn our technique for protecting profits for directional trades that eliminates the need for stop-loss orders and allows us to maintain profits during market corrections.