August 10, 2022


Technical Analysis of Financial Markets

Leaving Money On The Table Can Be A Good Thing…

Leaving Money On The Table Can Be A Good Thing...

But it can make you fu#!ing downright ill sometimes. It’s hard to talk about so I’ll just show you the chart…

I entered $CYOU calls based on a a confirmation of several indicators, as well as a pullback to a VPOC. It was the first time this year that three indicators I pay close attention to aligned, giving the same “buy” signal, which is rare. I exited the trade yesterday at the close for a paltry 222% win, as the rule based approach I am working on necessitated booking the gain. This morning at the open $CYOU went parabolic to the upside tune of another 10%, sending the option contracts I sold 16 hours earlier up another 500%.


However, if you want to remain in this game for any length of time, you need an objective rule-based system that you adhere to strictly. I did just that, so exiting the trade yesterday was the right move. Very few people can trade for a living, even fewer (if any) can survive for any length of time trading on intuition, using a discretionary approach. I tried that, and nearly ended up naked, in the middle of the street looking for my mother. I would be willing to bet that I spend more time analyzing markets and trading them than 95% of you, so take it from me that you NEED a rule-based system.

There will be times when you leave money on the table, as I have done with $CYOU, but these instances are rare. Focusing on risk management and having a defined exit strategy before getting into a trade will keep you in the game for the long haul.