Your Breakeven Stop Is Too Early
You move your stop to breakeven to reduce risk, but doing it too early can create a false sense of control. You’re not eliminating risk if normal price movement can knock you out before the trade has proven itself.
A disciplined adjustment needs more than a small unrealized gain. It needs evidence that the original risk has changed. The key is knowing what counts as evidence and what doesn’t.
Shane Daly, NetPicks Options
Author
Category: Options Trading Strategy
