Always take cookies (PROFITS) when the plate is passed! Yesterday at 12:11 a friend of mine texted me to say he was having a good trading day. He texted "presently I'm up $11,577" and went on to outline his trades.
I texted back "take your profits and run!" I also said "I tip my hat to you. You're way ahead of me."
So, how far ahead of me was he. Well, first of all, I don't like trading on Friday's very much. Furthermore, I don't like 0DTE trades and his were all 0DTE. At that time I hadn't placed any trades but did so at 12:20 using a small risk on NDX. I placed a mere two contracts 24130/24120 PCS 0DTE (against my own rules) which cost me 4.56 (912 total risk). My charting gave a SHORT BUBBLE and the market seemed to be in a down mood. This trade ended fully ITM for a $1,088 profit (less cost of trade), my favorite cookies.
Now back to my friend: Another text message at 4:02 p.m. saying the market had gone against him and he said he closed his trades for an ($11,330) loss. He went on to text "I learned a few things and next week will be better!"
My text back: "$11,000 positive is better than $11,000 negative! Take profits when they are on the table. Here's the way I look at it. You had an easy 11K profit but lost 11K instead. That's a 22K difference so the first 22K you make next week will get you back to the 11K profit you could have booked. A hard lesson I have often learned (but not at that level)!
I posted this because I think there is a lesson in there somewhere? It takes twice the effort to redeem a profit once it has turned into a comparable loss
I texted back "take your profits and run!" I also said "I tip my hat to you. You're way ahead of me."
So, how far ahead of me was he. Well, first of all, I don't like trading on Friday's very much. Furthermore, I don't like 0DTE trades and his were all 0DTE. At that time I hadn't placed any trades but did so at 12:20 using a small risk on NDX. I placed a mere two contracts 24130/24120 PCS 0DTE (against my own rules) which cost me 4.56 (912 total risk). My charting gave a SHORT BUBBLE and the market seemed to be in a down mood. This trade ended fully ITM for a $1,088 profit (less cost of trade), my favorite cookies.
Now back to my friend: Another text message at 4:02 p.m. saying the market had gone against him and he said he closed his trades for an ($11,330) loss. He went on to text "I learned a few things and next week will be better!"
My text back: "$11,000 positive is better than $11,000 negative! Take profits when they are on the table. Here's the way I look at it. You had an easy 11K profit but lost 11K instead. That's a 22K difference so the first 22K you make next week will get you back to the 11K profit you could have booked. A hard lesson I have often learned (but not at that level)!
I posted this because I think there is a lesson in there somewhere? It takes twice the effort to redeem a profit once it has turned into a comparable loss
