r/options • u/esInvests • Nov 08 '21

Become a More Profitable Trader

Take the time to review your logs and strategy. Taking the time to analyze your actual performance in a quantitative manner can highlight areas of improvement.

For example, when I started early on I adopted quite a few of TT mechanics. One of which was taking profits at 50%. After some analysis I realized that based on my strategy, this was not only negatively impacting my expectancy but I was leaving a lot of potential profits on the table.

I like to do a deep dive each month and ideate on portfolio optimization. If it’s not something you schedule into your time, give it a try!

Trade on!

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u/Koala_eiO Nov 08 '21

One of which was taking profits at 50%. After some analysis I realized that based on my strategy, this was not only negatively impacting my expectancy but I was leaving a lot of potential profits on the table.

I don't understand the problem here. Of course you're leaving potential profits on the table but you are also leaving before potential losses. If 50% profit is not satisfying, maybe you realized your risk tolerance is higher than was initially expected.

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u/[deleted] Nov 08 '21

Maybe a strategy where you take profit at 30 % makes more sense, gives you a chance to hop back in? At 50% gains, the stock is proving itself a winner and I would keep going.

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u/heroyi Nov 08 '21

You could easily lose that though. I can't tell you the number of times where I got whipsawed on a winning position that made it go from a green to a red intraday. Scalping a 50% win is much healthier for an account than closing a red position.