In Today’s Masters in Trading: Live Today, I want to talk about something that trips up even experienced traders. What do you do when a trade goes against you? Most traders have only two answers: Hope… or hit the stop button. But after nearly three decades in the markets, I’ve learned something important — discomfort is not the same thing as danger. In Masters in Trading, we treat every trade like stepping into a cave. At first, the path looks clear. Then the walls close in. The air gets heavy. And panic starts whispering in your ear. That’s the moment most traders run. We don’t. Before we ever enter a trade, we decide exactly what we’re willing to risk. That decision happens before emotions get involved. Because once you’re in the trade, fear will lie to you. So when a position moves against us, we don’t quit. We adapt. Let me give you a real example. Take our DINO trade. We entered with a clear thesis tied to refinery margins — specifically the crack spread. The trade moved against us almost immediately. That’s usually where traders spiral. Instead, we stayed calm. The original thesis hadn’t changed. So we used the pullback as an opportunity to scale in — strategically, not emotionally. Later, as the trade recovered, we were able to reduce risk, take partial profits, and manage our exposure — all without panic selling at the lows. We’ve done this repeatedly with longer-term holdings like ARM and our multiple trades in RUN. The list of examples goes on and on. And each one of those trades should bring us to the same realization… It’s not about asking yourself, “Am I right or wrong?” Instead, you should be asking yourself, “What’s the most efficient way to express my opinion on a given stock now?” That’s when trading becomes less emotional — and far more durable. If you want to see exactly how we manage trades like these in real time — including when not to roll how volatility drives every decision — join me for today’s episode of Masters in Trading at 11 AM EST. Just click here to get the full breakdown. P.S. Are you interested in taking the next step toward options mastery? The Masters in Trading Options Challenge is right here to help you in your journey. The Challenge is where we take everything you’ve learned in my daily LIVEs — fixed risk, thesis-driven exits, laddered entries, defined-duration trades, and emotional discipline — and put it into practice in a structured, step-by-step environment. For two weeks, we walk through the foundations of real options trading the way I learned them on the trading floor. You’ll learn exactly how I think, exactly how I build trades, and exactly how I manage both the winners and the losers. Just click here to check out what the Masters in Trading Options Challenge has in store for you. 
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