I’m going to date myself here. I think it was a Kenny Rogers song. The gambler. You got to know when to hold them and when to fold them. Same thing with bracket trades.
You don’t want to really invest in money in ones that are just doing nothing and be dead money. So a lot of times your job consists of hey, this is not working. I need to jump out into something else.
I am not saying just be freight and suffer from fomo but let’s walk through what you might want to use as a filter mechanism for bracket trades so this is an example of Microsoft.
There is a bracket of $217 by $210, $210 by $217. You’re four days end and you still don’t have an execution. You need to have. If you’ve these trades hanging out here that’s going to take money out of your potential capital because that’s how it works.
You can watch it and wait for an execution or you can move on to something else. Usually what I’ll do is if I don’t get some action on the trade either up or down in the first week or definitely about the second week I’m moving on to something else.
I’ll put it to work on something because there can be a breakway gap or a runaway gap that will actually give me a better turn of investment as opposed to be in dead money on the Microsoft gap up that has not filled yet.
Make sure that you have a hard fast rule for your filter mechanisms. How many days you’re going to wait and then move on to something else because as much as I love trading bonds I haven’t been trading a lot of bonds lately because they haven’t really been dealing with anything.
So I made a shift from, you know, bonds are ok. but really where the money is made on the side over here for the past several weeks is gold. At your job is to focus on stuff like that and make sure you have some really good rules for your setups.
Good luck. Hope it helps. See you on the next video.
Hubert.
