With Illinois under ‘shelter in place’ orders there are a lot of hassles and annoyances.
Without sounding like a huge snob I want to tell you a story about my cleaning lady.
She was supposed to come this week. My wife and I really wanted her to come…mostly cause our house is starting to deteriorate…quickly.
The kitchen is a mess…the bedrooms are gross…
And do not even get me started on the bathrooms!
In addition, we are worried about her as well. We know that she needs to clean houses to get paid.
While Lauren and I can work at home and see no real difference in our incomes, this person cannot.
Yet, we do not want her to come to our house.
- We want to ‘shelter in place’
- We don’t want her to get sick
- We don’t want her to get US sick
So what do we do? This is a bit of a lose-lose isnt it?
Trading presents us with perceived lose-lose situations all the time:
If I close this loser, it can’t come back and make money
If I DON’T close this loser it could get worse.
The classic trader’s lose-lose.
Here is the thing…
Being an options market mater taught me that situations are almost NEVER lose-lose.
With my cleaning lady, Lauren and I came up with a plan.
Pay her for this week, knowing that when she DOES come back it is going to take her 2x to get the house back in ‘fighting shape.’
Pay her now, pay her again when she comes (hopefully in April)?
While not perfect, my house is still a mess.
It does set up a ‘recovery’ for the house when the economy starts to move again.
Trading can be the same.
Sometimes we get so wrapped up in trying to figure out what to do with our current trade, we do not see the ‘recovery’ trade that is right in front of us. The other trade that is working that can more than make up for the one that is not.
This is something that the great market makers and traders are able to do.
Thus, I would ask you this, if you are sitting on a loser and not sure what to do…
Then ask yourself this:
Are you thinking too much on the wrong trade?
Your Only Option,
P.S.- This is why I like systems, is because with a nice frequency of trading I can move on to the next high probability options trade. It forces my head to think and move forward. This is why I opened up my Volatility Edge service at a lower yearly price so that people can start moving forward. Check out my replay here[replay link]
“Whether high, low, or changing…there’s always money to be made with volatility.”