The reason I’m thinking about this today—and why I decided to write this lesson—is because I’ve been progressively adding to my market exposure recently. As I continued to take positions, I looked down and realized that my long deltas are quite sizable. The market has allowed me to get to this point, naturally increasing my exposure as conditions improved. It wasn’t something I forced—just a matter of letting the market dictate my actions as I paid attention to the signals it gave me.
Here’s what I want to share about why this approach works, and how you can use it to manage your own exposure, especially when the market starts to turn in your favor.
Reading the Market Right
Markets aren’t always in a mode where they’re handing out easy wins. Sometimes, you’ll see everything firing on all cylinders, and other times you’re dealing with slow, sideways movement. The key is knowing when to wait and when to act. As the market started showing signs of strength recently, I didn’t rush in all at once. I let the setups come to me, and as things began to line up, I kept adding positions.
Ease Into It: Progressive Exposure
What’s been working for me—and what can work for you—is not jumping in with everything you’ve got all at once. Instead, increase your exposure step by step as the market confirms your moves. This way, you’re not overcommitting too early, but you’re still getting in on the action as conditions improve. I found myself getting longer and longer as my recent buys worked, and that’s a signal the market is doing its job. My long deltas have grown naturally as a result of this gradual approach.
Keep Risk In Check, Always
Even as the market allows for more aggressive plays, it’s still important to manage your risk carefully. I’ve kept an eye on my downside throughout this process, ensuring that if things shift unexpectedly, I’m not caught off guard. It’s about balancing the excitement of increasing exposure with the reality that no market move is guaranteed.
Patience: The Unsung Hero
Let’s face it: there are long stretches where you’re waiting for the market to give you an opening. Those quiet times can feel like forever, but the reality is, big opportunities don’t come every day. The reason my long deltas have grown isn’t because I forced it—it’s because the market finally gave me the conditions to step up, and I was ready when that moment arrived. Sometimes it’s about waiting, and when the market opens up, you’ve got to be ready to seize that moment.
Spotting the Leaders
One thing I’ve always kept an eye on is the leading stocks—the ones showing strength before the rest of the market catches up. By focusing on these, I’ve been able to get into the right positions correctly. And now that the market is backing those plays, I’m already well-positioned, riding the momentum of these early movers.
Bottom Line:
As I’ve progressively exposed myself to the market, I’ve let the conditions guide my actions. By increasing exposure step by step, while keeping risk in check, I’ve found myself in a position where my long deltas have grown naturally as the market strengthened. It’s all about patience, discipline, and waiting for the right setups to present themselves. When the market gives you the green light, be ready to capitalize—just make sure you’re managing your risk along the way.
