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My lesson on respecting stops – especially with options
Hey everyone, just wanted to introduce myself and share a quick lesson I learned the hard way. Early on, I was trading some $SPX options, and I had a decent gain going. Got a bit greedy, decided to move my stop a bit wider to "give it room" after it pulled back a little. Of course, it blew past that new stop too, and I ended up giving back all my gains plus some. Realized then that my initial stop was there for a reason, and moving it is basically admitting you're second-guessing your own analysis without new information. Now, if I set a stop, it stays put unless the market structure fundamentally changes, not just because I'm hoping for a bounce.
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