tailieunhanh - The option trader s guide to probability volatility and timing phần 8

Làm cho nó như là họ đi cùng, một trong một thời gian lợi nhuận đầu, mất tích, một động thái lớn, và sau đó tuyên bố sẽ đi xe thương mại tiếp theo chỉ để nhìn thấy một lợi nhuận nhanh chóng biến mất hoàn toàn. | More free books @ 189 Buy a Straddle 4050 3875 3700 3525 3350 3175 3000 825 926 1025 1127 1228 10130 10302 Figure Reader s Digest daily prices. make it up as they go along taking an early profit one time missing a huge move and then vowing to ride the next trade only to see a quick profit vanish completely. One of the biggest dangers involved in managing a long straddle position is overstaying your welcome. Often profits are available for only a very short time. Many traders have a tendency to hold on hoping for a huge price move only to see their profits disappear when the market goes back into the original trading range. What is important to note in this example is how setting objective exit criteria when you enter the trade allowed us to take a profit of 1050 dollars while risking 1700. Trade Result Stock close on January 26 at . Twenty percent profit target exceeded entire position exited. Profit 1050 More free books @ 190 The Option Trader s Guide KEY POINTS When buying a straddle focus on low-volatility situations and be certain to allow enough time for the underlying security to move before time decay begins to kick in. When exiting a straddle consider taking profits on part of your position as soon as they are available. Then if you wish you can hold your remaining positions and hope for a big score. The alternative is to establish a reasonable profit target and exit completely if that target is reached. Holding onto a straddle long enough to realize a profit can be very difficult psychologically. Many stock and futures traders learn early in their investment careers the importance of cutting a loss. However being too quick to cut a loss after entering a long straddle is often a mistake. You must give this strategy time to work. Once you buy a straddle this trade can show a loss for weeks or even months at a time. Then suddenly the underlying makes a big move your profit objective is reached and it is time to .