Lesson Learned
My GOD! A quite hefty sum of potential profit got lost last night and that made me learn a lesson. All this long I hesitate on adjusting the trailing stop for positions that I held, mostly because most of my trading friends in options doesn’t really employ cut-loss or trailing stop because they always claim that we can easily repair the position once the market turn its back on us. To add to that fact, I got “jumbled” in Apple’s false news fiasco last month that made my trailing stop got executed prematurely.
That premise might be true to prevent us from getting out of the trade early but in the case of a very volatile stock (mostly NASDAQ’s stock) such as AAPL in the last two months, trailing stop is a MUST. My portfolio went from 30%+ profit (in three weeks yay!) to only 10%+ profit (that 20% difference of profit got lost in 1 night. Boo!). Just a quick reminder to my self, never ever forgot or hesitate to set my trailing stop once the contract is already running for profit.
Your first mistake was getting in Apple so late, not failing to set stops. I’m in at $52 and this blip on the radar hardly gets my attention.