I Told Him to Close It With A Month Left

Disney had been sitting in a pennant, and a pennant gives you a measured move.

That's the height of the pattern projected out from where price broke, and it's the chart telling you roughly how far this thing should travel if the breakout works.

Disney's breakout worked, and it traveled, and then it got to that target and wicked right off it.

So I took a fib to it. Mark was sitting at the 13% retracement with a real chance of wicking under, which is not what you want to see.

Technically he had another point in him, up around 107. But the closest measured move had already been hit and the wick had already happened, and I would take my money here.

Now, a month of time left feels like a reason to hold on to something. It isn't one, and this is where I watch people give it all back.

Time on an option is runway. Runway is not a thesis.

Mark's thesis was that Disney breaks out of that pennant and travels the height of the pattern. By the time he asked me the question, that had already happened. Everything after it is a brand new trade he hasn't thought about yet, and he'd be taking it with money he already made.

And listen, I get it, I've done it. The chart still looks pretty and there's a month left and closing feels like you're quitting on it early.

But you decided your exit the second you drew that measured move. You just have to honor it when price shows up there.

So do this for me. Next time you're in something that's working, before you're anywhere near the target, draw it and write the number down.

Then when price touches it, you're not making a decision under pressure with real money on the line. You already made it.

Rock On,

Voz

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