On the members forum a question was asked on closing trades early to lock in profits. At a time when markets are becoming highly volatile, closing trades early to lock in profits and get capital back out of the volatility of the markets, can be key to continuing to build a portfolio, no matter what the market condition may be.
Here is a question from Bill on closing trades early:
I’m curious about your comment “a change in the underlying stock”. I’m an IB (Interactive Brokers) user too and am wondering what criteria/fields you use within the IB TWS platform that helps you identify a position in need of adjustment.
I remember you telling me about using the Ranking Tool… if a stock’s rank begins to deteriorate, then possibly it’s time to exit or adjust.
And then you have your spreadsheet to monitor your positions. I’m like this client above that wrote to you… with so many positions, it’s time consuming, for me anyway, to update the spreadsheet daily.
So… you have several methods of tracking your positions. If you can summarize to us how/when you use these methods, it would be most helpful.
Thanks and best regards,
This article looks at the questions Bill has asked and some answers regarding how I time closing option trades early. This article is for members.
The rest of this strategy article is for FullyInformed members.
Tools For Timing Closing Trades Early and Locking In Profits – Investor Questions
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