πŸ”΄ The Stock Market Crash 2020 – Day 50 | May 4th at 2:30 pm Central

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πŸ“‰The Stock Market Crash 2020 – Day 49 | May 4, 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 πŸ˜‰

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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