Risk management quick note

While reading some blog entries over the weekend. I realized that in the last few trades I made wasn't analyzed thoughtfully. I looked at how much money I can make, rather I should be planning for the exit strategy. In other words, what is my worst case scenario, at what point will I call uncle and get out. Often from my trades last year, I didn't have a good exit strategy or didn't have the discipline to follow through with my plan to exit a loosing trade. Planning a exit trade will help me get too emotional when encountered with a loosing trade.

Good article on exiting a trade
I let the emotion take over and hope that if I have a loosing trade, that will will come back. If I continue to trade this way, it will lead to my demise.

Another quick note about trading in a bear market, is that if a stock pulls back to pivot support, I should get out and take the profits (if short). I was going to exit my IWM put last week for a handsome profit, but thinking that the IWM would retest the NOvember lows, I decided not to exit. Right now it is in the red, but I'm also using this as a hedge.