There’s 2 parts to every trade. In order to make a good trade — BOTH parts need to be correct.
This past week, we issued what appears to be an almost perfectly timed short entry via SPY puts on the index. But in actuality, it only turned out to be an OK trade.
Because the 2nd part wasn’t timed well. Every trade has 2 parts – when to buy and when to sell. When to get in and when to get out.
Even if you get in at the perfect time – if you don’t get out – you could be leaving a lot of money on the table.
We entered a trade perfectly this week but exited a bit too early cashing in $500 – on a $1000 investment – but if we had held on to my target – that $1000 would have become $4,000 – so definitely kicking myself. Lesson learned – it’s not good enough to get one half of a trade correct. Both need to be correct.