A trader enters positions with certain expectations in mind. If his expectations are met, he can close his positions with a profit, and if the market doesn't unfold as anticipated, he can close them for a loss. I call this the "hit-and-run" method of trading.

Of course, no one should feel "locked-into" his positions. Just as a boxer learns to "roll with the punches," each trader can acquire the skill of reacting to what the market does by modifying, or adjusting, his positions.

You could say this is the process of accommodating (or getting in sync with) the market.

The trading plan that dictates when and how to close or modify positions is part of this "accommodation" process. And the interesting thing about it is that small modifications can have large implications.

Here's one example: Say you hold a call ratio backspread because you were expecting a rally. If the market instead declines, and you now expect it will continue to move lower, you can sell (to close) one of your long calls and simply hold the resulting credit call (bear) spread. By contrast, the hit-and-run method would have you close the position for a loss.

"Knowledge is power and all traders can benefit by continually bolstering their knowledge base. I hope to contribute in that regard."  Paul Forchione