Options
Take the Guesswork Out: Predefine Your Exits
Date: 2026-09-07 12:00:39
Exits should be predefined before the trade starts.
Every trade needs three exit rules:
When do I take profit?
When do I cut the loss?
When do I exit because time has run out?
Profit targets tell you when the trade has done its job.
Loss limits define when the risk is no longer acceptable.
Time-based exits keep you from holding too long or making last-minute decisions.
And once those rules are clear, they become simple if-then logic.
Assignment: before your next trade, write these down:
“I will take profit when ______.”
“I will cut the loss when ______.”
“I will exit for time when ______.”
Don’t wait until the trade is live to figure this out. Decide your exit before you enter — and that’s how you take the guesswork out of options trading.
#optionstrading #tradingplan #riskmanagement #tradingdiscipline #optionseducation
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This video is for educational purposes only and is not a recommendation for buying/selling any security. Options trading is risky, so please read our full risk disclosure here: https://optionalpha.com/legal/risk-disclosure-agreement
