Why dont you immediately get out of a position that looks like its going the wrong way?
Thats all part of the Precision Profits strategy.
When we have a losing option, we typically ride it to the bitter end. We do so because weve learned that we can be down in a position sharply, only to see that position rebound significantly in the final days as our expected trend takes hold.
One of our Briggs & Stratton trades is a good example. We were down 50% or so at one point, and we put in a stop-loss at 76% down, just to preserve some capital. But that was well away from the existing price because we expected the trend to still play out. And it did. We closed half the position with a 100% gain, and the other half with a 52% gain.