What to Do When You Have a Setback While Trading
By: Steve Smith
Loses are an inevitable part of trading.
No matter how good you are, no matter how much experience…
No matter how well you research a chart of a company’s fundamentals…
You will experience losses.
Still, even after 40 years, it’s the hardest part for me as a trader.
I enjoy everything else about trading, but when I lose money I hate it.
When I do have a losing trade, I keep in mind that we don’t build wealth with one trade. We build wealth by making good trades and mitigating downside risk.
Of course, I am writing this because we closed a losing trade in Options360 today and I am really upset about it.
However, over the last month we have also closed these trades:
- 52% ROI in COST over a 3-day time span
- 28% ROI in MILE in 16 days
- 43% ROI in less than 3 weeks in PHM, and
- 225% ROI in just 8 days in SPY…
And the losing trade from today was mitigated…
It could have been a virtual “bloodbath” if we hadn’t structured the trade like we did.
Further, when I realized that my underlying thesis of the trade had been violated, I didn’t try to fix it, we just closed out and took the loss.
I hate it when I am wrong – but considering that Options360 is up 24.2% in the first quarter of 2021, we are making the right decisions overall.
If you missed out on the host of amazing trades in the first 3 months, it’s time for you to get on board now. If the first quarter is any indication – and I believe it is – this is going to be a record-breaking year for Options360!
To Your Success,