I come across many traders every week, each with different styles, backgrounds, levels of experience and preferred trading vehicle—futures, commodities, stocks, options, crypto. They all want to know...When am I supposed to sell, states Bob Lang of Explosive Options.
These Selling Strategies Are a Must
Selling can shake your confidence. Heck, it can be scary. “Is this the right time? Should I wait? Should I have sold it yesterday?”
No matter the situation, remember that you are in the moving business. Trading is about banking winners, taking profits, cutting losers, building cash (dry powder), and preparing for the next run, whether it’s up or down.
There is no concrete selling rule for everyone to follow, but there are some very important selling strategies that will help you grow your portfolio and avoid a total wipe out.
Take control so you’re not pushed around by the markets. This means removing your ego from the game. Profits can slip away quickly, so even if you think you should make more money on a trade, sell when you have a profit. I take money off the board on a regular basis. It’s the only way to stay in control of your portfolio.
Understand Your Risk Tolerance
Some traders have a high threshold for pain and will hold trades for longer periods in the hopes of making bigger profits. That’s not me. I exercise the sell button sooner and more frequently. As I like to say, nobody ever went broke taking a profit!
I know that selling instills immediate fear of missing out (FOMO). I used to suffer from a feeling of loneliness whenever I cut a trade (winning or losing—didn’t matter). It was a one-sided love affair. The breakup was hard on me, not the stock or option. But, I soon realized life goes on and I can just move to the next trade. That’s the key to managing regret—just keep moving forward.
As your trading journey continues, you will be successful if you keep putting money in the bank on a regular basis. These selling strategies are a great start.
Learn more about Bob Lang at ExplosiveOptions.net.