Lesson learned this week about taking profits.

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by NYCambition21

Ive been scalping SPY ITM weekly options. It has been very profitable. Usually I make between $100-$300 per trade but I would do that multiple times throughout the day so it adds up. I use the TDameritrade LRC indicator and MACD to help me know when a bounce or reversal will occur.

This is about me venting about taking profits. I was up over $700 on one trade with a SPY put and thought that would go down more due to greed. Then it reversed and I ended up losing $3k. What’s even worse is that I was being speculative and thought that it was going to reverse. It was on Thursday when SPY hit new ATH. So I decided to hold and hope for a reversal but it never did. I went from $700 up to down over $3000. Safe to say, I learned my lesson. I should’ve have just taken the $700 profit and go from there.

Lesson learned: people never went broke taking profits. They have gone broke by being too greedy and trying to hold out for more profits.

I don’t need to try to make $1000 on 1 trade. I can make 330 on 3 separate trades and that will add up. Trading is a marathon. Not a sprint.

Edit: please stop messaging me asking how I did my trades or if I can teach you. I’ve already stated how it’s done in my post. Please just read up on LRC channel and MACD. There’s YouTube videos about it.

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.

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