It being Saturday, there isn't much to report, but I thought of one basic rule that I have yet to mention about Condors. This rule has to do with protecting profits. Generally speaking, I am very happy to make 10% in a month on a Condor position. Some people strive for more, but 10% is plenty for me.
Given my modest expectations, I am very stingy with profits once I get them. My basic profit protection rules go like this:
- When I am up 5% I have a stop-loss at ZERO. That means once I get up 5% I am not willing to lose money. If I get up 5% and it goes back to zero, I get out.
- When I am up 10% I take the trade off and wait for next month.
Simple rules, but they stop me from letting winners turn into losers.
Good Trading...
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