Editor’s Note: If you missed Nate’s “Mapping the Market” class this afternoon at 1:30, you’ll want to hear how he lost $20,000 this week (and how he’s making sure he doesn’t make that mistake again!) Catch the replay here! |
You’ve heard the expression “a watched pot never boils” before.
Well, I think traders should familiarize themselves with a different expression:
“A watched trade never wins.”
At least, not if you’re me.
And that was certainly the case earlier this week on a trade I had going on Procter & Gamble (PG).
You might remember, I found this trade using the amazing Wave Indicator that Alex Reid hooked me up with (don’t worry, I’m begging him to share it with more folks as we speak)
I even put the word out in the newsletter and on Telegram:
(If you’re not following the Telegram, do so here!)
So I set up my trade: a debit spread on PG, expiration 2/14, and I set a GTC order at $2.10 targeting about a 50% return (my entry was $1.34)
And then I waited…
And I watched…
And as seems to always happen when I enter a new trade, things didn’t look great at first.
PG spent a few days moving lower, and my trade was down to almost a 100% loser.
And here’s where my brilliant trading acumen kicked in (and by that, I mean my indecisiveness): I did nothing.
I just put the trade out of my mind, decided I could stomach the 100% loss, and figured I’d let it expire and hope for the best.
I’d almost forgotten about it when I logged back in yesterday morning and couldn’t find it…
It took me a few minutes to realize that the GTC cancel order had filled, and what had been a 100% loser turned into a 57% winner without me paying any attention at all:
Now, every trade won’t work out that well, but I essentially turned a $134 LOSS into a $200ish gain just by NOT doing anything.
And being comfortable with the possibility of a 100% loss made it possible.
The Wave Indicator made it possible too! And I can’t wait to tell you more about that.
Hope you have a great weekend!
To your prosperity,
Stephen Ground
Editor-in-Chief, ProsperityPub
P.S.: Happy Valentine’s Day too! We here at ProsperityPub LOVE our members and readers, so hope you have a good one!
