πŸ”΄ The Stock Market Crash 2020 – Day 53 | How I Manage A Losing Trade Part III

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πŸ“‰The Stock Market Crash 2020 – Day 53 | May 7, 2020

How I manage losing trades part III.

Over my last few session, I’ve discussed a trade I took last week in Hertz (HTZ) that quickly moved against me.

This Monday I launched a “rescue mission” to save the trade and today, I’m happy to say that mission was a success.

Every trader needs to learn how to manage losing trades. Losses are just part of being a trader.

So let me give you a quick recap if you haven’t been following along over the last week, or you can watch the first two sessions here:

How I Manage A Losing Trade Part I: https://youtu.be/X_dyy0x3B4U
How I Manage A Losing Trade Part II: https://youtu.be/zNb247cTBZ4

Last week, I sold 25 of the 3.50 HTZ puts for .35/option.

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

On Monday, I bought back the 25 contracts I sold for $1.30 per contract; that’s $3,250 – $875 in premium I originally collected leaving my loss at $2,375 πŸ™

Not great, but not then end of the world with the account currently at around $39k

Now, in addition to buying back the $3.50 puts I’d sold, I put on a new trade in HTZ where I sold the $2 put for .60/contract. I sold a total of 55 of them, bringing in $3,300 in premium.

Once again, I sold the May 15 contracts so the idea was as long as HTZ stayed above $2.00 by then, I would keep the full $3,300 in premium, turning my losers into a nice winner.

And as I mentioned above, I’m happy to have closed out the HTZ trade turning my loser into a nice winner πŸ™‚

For a lot of people taking a loss is a hard reality to accept. Some 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 I hope this has helped you understand that taking a loss isn’t the end of the world and in some cases, you actually turn the trade around.

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.

We’ll watch together the last 30 minutes of the stock market cash session. These session are a great way to keep a pulse on what is happening in the stock market each day.

During these sessions, we’ll also discuss 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.

#howtomanagealosingtrade #managinglosingtrades #losertoawinner
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Comments

NOLA THERAPY says:

I love your channel Markus, and these videos sharing your knowledge are awesome- Thank you.

Peter Davis says:

his this a 40 pare share put

Steve Whitbeck says:

Do you answer (reply) each question on askmarkus.com or is it better to ask here?

Steve Whitbeck says:

Hi Markus, just to let you know, the recorded video kept losing clips of time… like jump ahead 5 or 10 seconds.

Logan says:

wanna be friends?

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