today is April Fool's day, nothing really special for an indifferent person like myself. But interesting, I need to modify my rules after a few of trades.
GS, I entered a PUT on Mar 26, it plunged $7.00 the next day then moved $3.00 lower the day after. It was Friday. I was looking at my Way-out-of money Put almost doubled in it value.
Friday it closed at $164.45, and my target was $155.
And it did not happen!
Monday it rallied almost $2.00 and I did not move my stop. Today it rallied already $7.00.
and I let a profitable trade turn into a loser.
So here are the modifications to my rules.
> move the stop to the High (low) of the first high day on Bearish (Bullish) trade, except the stock already moved against the plan on the next day.
