He was holding a batch of call options that had crushed it throughout an otherwise red day for the market. The gains looked good — really good.
However, Jake knew from experience that anything could happen between the Friday close and the Monday open.
He jittered nervously in his chair for fifteen minutes, waffling back and forth between holding and selling…
Ultimately, he decided to sit on his calls, thinking there was a solid chance of more upside on Monday…
But the weekend brought bad news — increased concern about the Delta variant of COVID-19, with rising cases in the U.S. and around the world. News outlets speculated that the resurgence could slow down economic recovery.
All weekend, Jake was glued to his phone, nervously scrolling, stressing over what might happen, unable to enjoy his time off. (I destroyed him at golf because of this.)
On Monday, July 19, 2021, Jake's worst nightmare came true — the Dow Jones Industrial Average dropped over 700 points, its biggest decline in months.
Meanwhile, Jake's once-profitable positions gapped down over 50% at the opening bell. He lost tens of thousands of dollars in the process.
After the dust had settled, he wasn't just down financially — he was mentally and emotionally tapped out. It took him months to recover.
Jake's story is a cautionary tale about the dangers of holding speculative, short-term options trades over the weekend…
I want to tell you about a simple step I take — one that most traders don't consider — that has helped me last 25 years in the stock market.
The idea of 'going flat' on your positions over the weekend — I call them Flat Fridays…
Flat Fridays can help protect your mindset, your account value, and your overall risk management.
If you want to stop feeling like this over the weekend:
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