Here is a quick post to follow up on the recent one I did on several things you can do that can 100% improve your trading. Another simple thing you can do is to put profit-taking orders out there as soon as you enter a trade.
Better Chance of Getting Filled
Think of it this way: If an order is already in the system, you have a better chance for it to be filled. It is as simple as that. So many times you will notice a stock that gaps and reverses direction right after the open. If you are waiting with no order out there, you clearly have no chance of getting filled. But as I tell my students, if it is out there, you have a chance.
Stick With Your Decision
Let’s be honest, most traders find it hard to be disciplined. I know that is shocking to many of you! Having a profit taking order out there also keeps you disciplined by removing risk and not letting the emotional trader make decisions. Should I move my order? Should I pull it off and give it more room? Stick with what you originally decided.
Lastly
Between doing tight spreads on your vertical credit spreads and putting profit taking orders in the system, you are helping yourself more than an option trader who does not. That is 100% guaranteed.
