My biggest problem is self discipline. I am always so convinced that the market would move back in my favor even if it is currently going against me. Before I know it i’m out and I can’t even take partial loss. Yesterday, after watching the Iron butterfly Strategy, I opened two trades, I sold one that the strike is above (with profit potential of $25) current market, then bought another (with profit potential of $25)that is currently in the money by over 40 points. Immediately after the trades execute, I was losing some money but less than what is recommended for the IBF strategy. The current market was midway between the two strike prices, then it quickly moved against the one I bough but not even close to the strike price yet, but I was losing close to the cut off point. On the other side, I was making profit but since the current price is not anywhere close the strike price where I was losing, I was not willing to get out and take partial loss. I was kicked out of the trade before the current market hit the strike price. A few minutes later, I was back in the market but not even close to half of the initial investment so I still did not get the hint to take less because it came back up and above the strike again. I was out and back more than 3 times, and every time it kept getting less and less so I kept hoping it would go up further so I can recoup at least half of my money and that was it, the market went dead, no movement at all at some point until expiration. My question is, suppose the current price is not close to the strike price but i’m already losing more than the 25/75 cut off point, what should I do in that case?
Remember
Trade what you see, not what you feel.
I see that your new here. I’m not a fan of iron butterflies. I know most ppl do them because most people like to trade binaries. I was once like most ppl until i got into spreads. They are waaay more comfortable to trade once you learn how to trade them. So my advice is to stop trading iron butterflies and learn how to trade Iron Condors on spreads. You will experience less pain and make more money on spreads bcus they are not all or nothing. I find it amazing how i can put on an Iron Condor overnight on indices and wake up to money in my account. This morning i woke up to $106 profit on one contract on NQ from an Iron Condor. That’s way more than i normally get but thats the power of spreads.
You don’t av to listen bcus i kinda think i’m biased towards spreads now a days. I’ve had way more success trading them. I hate binaries bcus I’ve suffered too much pain from them. I want to save as much ppl as i can from the pain binaries can inflict.
Biased or not, Spreads really are the way to go. Nice job on the Iron Condor Renzo! 
Peter
Thanks peter. Spreads are rlly the best way to go. Especially for someone who doesnt av the time to trade all day.
Just put on these condors @6pm and im making money 2hrs later.
