And That’s Why You Cut Losing Trades Quickly

Posted on Feb 10 2017 - 1:30pm by Dan

As of late, we have been allowing ones to see some of our moves in our long-short process.  Perhaps not the exact rationale for placing the trades in the first place, nor the management of the trades.  However, we have been demonstrating our overall moves.   Yesterday, we discussed cutting losing trades; such as my BLDR short.

And today is an excellent example of why you cut losing trades.

First of all, BLDR is up another +1.06% today.   But that’s not something I have to worry about, because when it became clear I was wrong, I admitted it, and cut the trade.

And today … nearly everything I manage, both inside the the long-short process and outside of it, is running my direction.  Those  February GLD 112.50 puts I sold?  I hate to say that any trade I have on is ‘booked profit’ until the trade is complete … but with a delta of -0.02 and 5 trading sessions left to expiration?  That trade is looking nearly banked.  And SYNT?  SYNT is running higher like 9 hippies in a helicopter.  And these trades are allowed to run higher, without the boat anchor, of being short BLDR.

Remember, if you have to cut trades that are moving against you?  Do so, and do so quickly.  And let those winners run …

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1 Comment so far. Feel free to join this conversation.

  1. mappy February 10, 2017 at 3:16 pm - Reply

    ooo oooow take the money and run! New highs!

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