🔴 The Stock Market Crash 2020 – Day 49 | How I Manage Losing Trades

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📉The Stock Market Crash 2020 – Day 49 | May 1, 2020

Are you worried about losing trades?

Every trader needs to learn how to manage losing trades.

Right now, I have a trade going against me, and during today’s session, I will show you exactly how I deal with and manage trading losses.

If you haven’t figured it out yet, losses are just part of our business as traders.

For a lot of people this is a hard reality to accept. Someone people strive for perfection in everything they do…and as a German, let me tell you, I understand 😉

But if your’e new to trading stock, options, futures or whatever, you need to understand that it’s not IF you’re going to take a loss, it’s WHEN are you going to take a loss.

So with that out of the way, let’s take a look at the specific trade that is moving against me: HTZ

Hertz (HTZ) the rental car company, like so many companies right now is hurting pretty badly.

A few days ago, I sold the 3.50 put for .35/option and I bought 25 of them.

For each put option I sold, the broker deposited $35/contract into my account so that’s a credit of $875.

So today, the stock got banged up on news that they missed a payment and have until Monday to work this out with creditors. If they don’t they may be looking at filing for bankruptcy on Monday.

Am I going to get assigned the stock today? No! We still have about two weeks before these contracts expire, but as I’ve stressed when selling put options it is 100% that this can happen.

So here are the two scenarios I’m looking at for Monday:

1) Hertz works out a deal with creditors and the stock takes a nice jump higher and we’re able to get out somewhere around break even…give or take a little.
2) Hertz is unable to make a deal and creditors are forced to sell Hertz’s assets (cars) which they would get pennies on the dollar for in the current conditions.

So out of these two, I really believe we’re far more likely to see options 1.

Now if you’re in this trade and you’re really sweating it, you can take your losses at currently around $75/option contract, but with time left I plan to hold on here.

Once again, sometimes it’s important to just ‘take your medicine’ because this small loser could turn into a HUGE one!

So next Monday I plan to continue this discussion managing trading losses, here with you live at 2:30 pm Central. If you’d like to join me, subscribe to my channel and you’ll be notified when I go live.

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Join me Monday-Friday at 2:30 pm Central to cover this historic stock market crash that kicked off, February 2020.

During these live sessions, I’ll cover LIVE stock market action and share how I’m currently trading the markets with my live account.

During these sessions, we’ll cover topics like:
– Stock Trading
– Options Trading
– Futures Trading
– Binary Options
– Real Estate

Don’t forget to subscribe to my channel, so you’ll never miss a market update or one of my live “Coffee With Markus” sessions.

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Comments

Pana Ioan-Dorin says:

bulllshit ….5K for your software that is bullshit …..help some people bro. … be a real dude…tony robbins, ray dalio, buffettt….stop being a fony comi/capitalist….help some people out

Mike Stenhouse says:

I think this is an important lesson for beginners. You need to have an exit strategy before entering a trade so you do not panic when it goes against you – you just follow your plan, even if that means taking a loss at some point. Also, as a trader you MUST learn how to deal with trades going against you as it WILL happen fairly frequently.

Monjur Karim says:

As for the theta Kind options class, may I check when we sell puts together with your team, how can it be done (on what platform). Once selling done, will you send us the guide on day to day basis when should we close the deal (either to cut loss or with max profit) ? thanks n good good good

Monjur Karim says:

I have downloaded The PowerX Strategy ebook from amazon and will go through soon. I also downloaded rockwell apps on my anroid phone. What will be the password to activate the rockwell apps ?

Monjur Karim says:

Hi Marcus, Pleasant presentation. I have a little request. As there is prevailing COVID-19 situation, would you consider the "FREE Live In-Person Stock & Options Trading Bootcamp" to run via Zoom webinar (many people are doing so). And also, this will help many of those who are residing out of USA. appreciate your thoughts.

john B says:

A losing position is like a hair shirt not very comfortable. But love your optimism! Don't think you mentioned whether you believe in the old adage 'Sell in May'. Northern Hemisphere holidays have already been spent in 'Lock down' and if anyone is travelling they'll probably be doing it in their own back yards.

john B says:

Trade what you see not what you think…it's true. Presumably the indicators were all showing a buy? Knowing some of the fundamentals for example that Hertz was on the brink of bankruptcy then maybe a quick check on a company forum or business news would have swayed you away from this trade. Also did the market cap of Hertz fit the criteria?

Trading With Will says:

I thought you put stop losses and don’t watch the trades.

James says:

Hey Markus great video! I just watched your on-demand training on PowerX, another great video! I was wondering if you could give some insights or suggested resources if one wanted to create their own software to help visualize their strategy. I love the organization and visuals of your software it looks great.

Jim Vescio says:

I want a Good Good Good mug

sama sama says:

Hi Markus, are you subscriber of Ricky Guttierez?

Marlene Wright says:

Great video again we’ll keep this on our library. Thanks Marcus. Question: When we cannot find a Delta on our broker platform but we manage to get a Green tick on a put option calculator should we go ahead?

Trevor Sancho says:

Don’t change the ‘Good Good’ it’s vintage Markus

Pete Juratovic says:

Are you concerned about bankruptcy on 4 May? If they file bankruptcy, wouldn't all stocks and put go to zero?

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