Happy Wednesday, traders…
Jeff here.
If you’re struggling to make consistent profits in this choppy market, it’s time to pay attention…
I’ve trained a lot of traders throughout my 25-year career.
Unfortunately, I’ve seen students throw in the towel and quit right before they’re about to make a major breakthrough.
It’s usually like a little trigger — an ‘a-ha moment’ of sorts…
It’s a switch that goes off in your brain, turning your mediocre trading into a consistently winning strategy.
For a lot of you, this comes down to identifying your ‘Achilles heels’ — a single vulnerability or weakness in your trading.
EXAMPLE: I love to golf and I’m always trying to improve my game…
Years ago, I met a pro golfer who gave me one simple tip to help me not slice the ball — and it changed my swing forever. I’ve shot a lower average ever since.
So, if you have one negative aspect of your trading that’s tripping you up, let me show you how to start correcting it today…
My ‘Achilles Heel’ (and How I Overcame It)
No one comes to the stock market fully formed, crushing every trade on the first day.
No trader is perfect.
The vast majority of traders have some sort of ‘Achilles heel,’ preventing them from reaching their ultimate potential.
For example: I know my Achilles heel is that I get overconfident and oversize my trades…
I want to sit at the ‘biggest boy’ table at the casino … all night, during every game.
In the past, this tendency had led to some dangerous, risky scenarios in my trading.
But here’s what helped me…
After 25 years of professional trading (and constant self-evaluation), I know myself.
Having a keen self-awareness of my strengths and weaknesses allows me to pick and choose my position sizes based on exactly that.
I used to let my overconfidence get the best of me. But now, I have the experience to avoid most of these situations entirely.
The key is to know thyself…
3 Common ‘Achilles Heels’ for Options Traders
I can’t tell you what your ‘Achilles heel’ is. You know yourself better than me.
But I can show you some common pitfalls options traders face (and how you can potentially overcome them)…
Entering Trades Without a Game Plan
Just like golfers need a course map (and a weather report), options traders must have a comprehensive game plan before every trade.
It’s crucial to set your price target and risk level, as well as to know when to enter and exit a trade.
You should never buy contracts without carefully considering your entry point, but I see many inexperienced traders make this mistake.
They’ll get trigger-happy and buy contracts immediately, then realize they could’ve purchased at a lower price had they just been a little more patient.
Then, how you exit trades is arguably even more important than how you enter them…
After all, exits are where you make (or break) the bank.
- Always have a price target where you plan to exit.
- If you’re worried about your timing, or being able to pay attention to the market for the entire trading day, don’t hesitate to set a limit sell order.
- If you’re up 100% on an options trade, you should probably just sell the entire position. But if you see more upside on the chart, you can sell half of your position. From there, you’re ‘playing with house money.’ This can make the second half of the trade — and your ultimate exit — much less stressful.
Without planning your trades, your chances of success in the market are as slim as trying to sink a hole-in-one with a blindfold on.
Revenge Trading
If you find yourself engaging in impulsive and high-risk trades immediately after experiencing a loss … you’re revenge trading.
Instead of carefully analyzing market conditions and making well-informed decisions, revenge traders allow their emotions to dictate their actions.
They’re driven by a desire to recoup their losses quickly, often without a solid strategy or proper risk management in place.
One of the primary reasons revenge trading is so problematic is that it goes against the fundamental principles of successful trading.
Trading should be approached with a calm and rational mindset, backed by diligent research and analysis.
However, revenge trading throws all caution to the wind, leading to impulsive and reckless decisions…
Avoid it at all costs.
Chasing the Lottery Ticket
Buying cheap, out-of-the-money options in hopes of striking it rich is like buying Powerball tickets — it’s an enormous long shot.
But I get the allure…
Sometimes, traders can’t help but look at the ‘max profit’ on a trade and think they’re instantly gonna bank it.
The possibility of hitting it big can be tantalizing, but the reality is that these contracts usually expire worthless.
And if you continually go for these types of trades, you’re far more likely to lose all of your money than make 1000% overnight.
This is why It’s wiser to make more calculated trades than to rely on the outside chance of a big payout.
WARNING: Steer clear of contracts that are super far out-of-the-money (OTM), or expiring that week.
Try to get on the fairway as opposed to hitting a hole-in-one.
Happy trading,
Jeff Zananiri
P.S. With today’s uncertainty, many folks are all but guaranteed to lose money in the markets…
But by following my unique method for finding trade ideas, savvy traders now have the chance to witness double and even triple-digit gains like:
+69% on BKR in 1 Month
+85% on ORCL in 1 Month
+153% on Meta in 1 Month
+210% on WKHS in 1 Month
+423% on COG in 1 Month
(Just to name a few…)*
Having this edge helped me take $5.1 million in seed capital … and grow it to over $700 million in total profits — a 13,625% growth without losing a single quarter.*
Discover the key behind my “Calendar Stocks” edge in the markets — CLICK HERE TO GET ACCESS NOW.
*Past performance does not indicate future results