Buying Calls/Puts instead of trading underlying?

Interesting approach...I have actually traded diagonal spreads by initially purchasing the long leg and only selling the short leg after it goes against me to the point where I would have set an equivalent stop loss. In the cases where you get a runner, you're in a long option only, so you're good to go. Since my stoploss is usually fairly reasonable, the short leg doesn't lose too much value when it moves against me. In that case, I'm pretty much at square one...and in my experience, the benefit you get from playing those runners outweighs the losses you incur from letting the short leg premium drop a bit.

 

No of course not, but if there's a better way for me that would be fine, too

 

That's a good example of incorporating a mental stop loss and money managment with a trading plan... do something to moderate the losses while getting an occasional runner.

 

Well you know, if it takes 7 days for your move to develop, wait 5-6 days before taking your position

 

Hahaha
Good one!

 

I always carefully analyze every trade first. If the trade would become a loser, then I don't take it...

 

Or to take the opposite position, then you won't have a loser at all.