drluke wrote:

Question for after hours…from a mental standpoint, how quickly can you reverse your thesis in the day.  I had a neutral/bearish bias and lost my first put of the day.  I managed the position well and saved face (selling against it into a spread, then legged out), but mentally it took a long time to come back from having tunnel vision looking for bearish plays all morning.  I find myself missing out on the bulk of moves on days when I get the thesis wrong and fail to recognize it and adapt.  Looking back on today (and last Friday where I was small green but missed out on so much), there were so many clearly strong stocks I could’ve ridden up (NFLX, META, TGT, etc) but I wasn’t in a place to do anything else until 3pm.  Thanks in advance for any insight.

You mention your thesis, but you do not provide a timeline. Is this an M5 day trading thesis or a D1 longer term swing trading thesis. The longer term your thesis, the harder is should be to turn. If your longer term thesis is bearish, you can’t ignore what is happening short term. You have to decide if you are going to lighten your risk and take some gains or if you are willing to ride out the bounce and to what degree. When your longer term thesis is bearish and your short term thesis is bullish, you do not have to take bullish positions. You can go to cash and wait to reload. You can also mix in a few longs to hedge your shorts. It is a personal preference. I like favor cash when I am in that situation. An M5 thesis can change many times during the day. 

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