How To Manage Losing Trades - How I'm dealing with my $25,991 "losing trade" (Episode 146)

- How To Manage Losing Trades - How I'm dealing with my $25,991 "losing trade"
To get the transcript and MP3, go to:
https://www.rockwelltrading.com/coffee-with-markus/how-to-manage-losing-trades-march-2021/
Intro: 0:00
How To Manage Losing Trades: 3:15
How To Deal With Losing Trades: 5:53
How To Fix Losing Trades: 10:47
When To Get Out Of A Losing Trade: 23:46
Deep Dive Q&A: 30:25

Right now, I'm having a $25,991 losing trade in my account.

I know this is going to sound like a broken record, but managing losing trades is one of the hardest things about trading stocks and options. It's especially difficult when you're on a run and had a bunch of winning trades, only to see it erased in a matter of days in a trade that goes against you.

This video is about how to manage losing trades
- How to deal with losing trades
- How to handle losing trades
- Why do I keep losing?

How to deal with losing trades is extremely important when managing losing trade.

If you need more help with how to manage losing trades or other info about how to deal with losing trades, How to handle losing trades or why do I keep losing, leave a comment below.

How To Manage A Losing Trading

How TO Manage Losing Trades
RIDE: What happened?
RIDE - Hindenburg Report was published
It’s never the news that’s moving a stock, its the traders reaction

How To Deal With Losing Trades
It’s the reaction of traders to the news
that’s moving the market
Reaction:
“Trade What You See And Not What You Think!”
Quick move down
BUT then we found a bottom
What’s next?
RIDE is reporting earnings on Thursday
They haven’t issued a statement yet
Scrambling
Adjusting their earnings report
“We got this!”

How To Fix Losing Trades
Cut your losses (bad idea when trading “The Wheel”)
“Fly a rescue mission”

Example (RIDE):
Sold 47 Puts 21.50
- I now own 4,700 shares at $21.50
- I could sell more put at a lower strike price
- Sell at 77 Puts at 13 Strike
- If the stock trades below 13 on Friday,
- I would own another 7,700 shares at $13

Cost Basis:
4700 * 21.50 + 7700 * 13
= 101,050 + 100,100
= 201,150 / (4700 + 7700 = 12,400)
= 16.22 adjusted cost basis

I already collected premium:
Sold 47 Puts for $0.42 = 1,974
Sold 47 Calls for $0.30 = 1,410
Sold 47 Calls for $0.35 = 1,645
I would have sold 77 Puts for $0.50 = 3850
Total Premium collected = 8879
8,879 / 12,400 shares = 0.72 per share
Cost Basis = 16.22 - 0.72 = 15.50

Right now, I am waiting for the Earnings Call on Thursday before making a decision on whether to fly a rescue mission or not.

When Should You Get Out Of A Losing Trade?
Let’s say RIDE drops to $12
Cost Basis: 15.50 - 12 = Loss 3.50 per share * 12400
= 43,400

$500,000 buying power
I would consider bailing if my loss is at $50,000
= 10% of the account

Recommended Links & Videos:
To get the show notes you can register at: http://rockwelltrading.com/app (use your email address) and the notes are posted under "Coffee with Markus" email support@rockwelltrading.com for assistance (maybe reword this for description)
How To Fly Rescue Missions: https://www.youtube.com/watch?v=OlTD9h_ZNd8
Wheel Playlist: https://www.youtube.com/playlist?list=PLBa3sAx-Io2mybLLdWtbjTFqK9-BR5SJb
A Detailed Guide How I made $52,138 in 8 Weeks: https://www.youtube.com/watch?v=LORPBdgxr8w
How To Find The Best Stocks For The Wheel Strategy: https://www.youtube.com/watch?v=t-zSW3y0uSc

#StockMarket #OptionsTrading
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Видео How To Manage Losing Trades - How I'm dealing with my $25,991 "losing trade" (Episode 146) канала Markus Heitkoetter