Option Stalker - Lesson On When To Take Profits On Trades

in this video I'm going to try and describe some of the methods that I use to exit trades and to take profits I constantly hear from traders I get out of the trade too early and then I watch the trade absolutely take off and there I am sitting on the sidelines for I

waited too long and now the stock pulls back and I gave back most of my profits so where is that happy medium I'm gonna start by saying that there is no absolute solution to this but I think you'll find a lot of your answers in backtracking and kind of reversing your thinking as far as when you would enter

a trade and obviously the more attractive a position looks on the short side the more inclined you should be to take profits on the long side so think about it I'm looking I'm evaluating I'm evaluating and an opportunity looks great from the long side well why why did it look good from the long side what

were all of the inputs and all the variables that made you think this was a good entry point from the long side if you use that same rationale in your in the trade and you're wanting it to move higher and it makes a big move higher and now all of a sudden you're starting

to look at it should be using that same thought process to tell you when the picture is starting to shift to it more of a negative outlook and that'll help you determine when to take profits scaling in and scaling out is always a great way to even out your entry price and your exit price the sooner you come

to the realization that you will never sell the top the better off you'll be you're never gonna pick the absolute best price to exit now a lot of people like to use percentages for their stops personally I it's - mechanical I see the market as being very very fluid and it is ever-changing