Trader A stopped me in the hall to OK his large options put buying (bet to the downside). He has more exposure than his risk parameters allow. I ask the length of the trade. He replies, “maybe Monday.” I ask whether that makes sense for him. He thinks about it but responds the longer play is the trade. We agree this is a day to go for it and added risk makes sense. I leave the exit up to him.

Thirty minutes later he bolts into my office with: “I got flat. I was up too much. When I am up this much too often I give back my day.”

Same firm. Different trader trained by the same firm. Same day. Literally feet away from Trader A, Trader B exchanges a gchat with me. I ask Trader B his plan for the day. He shares he is holding for LOD (low of day). He holds and gives back sizable open profit. He is a bit bummed leaving the trading floor after the close but had decided to go for it.

Trader A and Trader B made different trade management decisions.

There is no right answer to how to have traded today. There is a right answer for you given your trading rules and system.

Today we score one for the profit takers.

*no relevant positions