Happy Halloween, traders!
Ben here.
Today, Iβm gonna let you in on a little secretβ¦
The single most valuable asset a trader can possess is not a well-timed tip, a specific strategy, or a fancy business degreeβ¦
No, the most important word in trading is βhumility.β
Over years of trading, Iβve come to realize that humility is not just a virtue β it’s an essential personality trait for long-term success in the options market.
But itβs not easy to stay humble as a trader, especially if youβre consistently winning.
Iβll be honest β¦ Iβve been nailing some extremely profitable trades recently.
After big wins, Iβm constantly reminding myself that Iβm not a genius, Iβm not God β Iβm just a trader who has strung some good plays together.
You should do the same.
If youβre not careful, overconfidence can creep into your trading psychology and potentially ruin your mindsetβ¦
To avoid this, βHumilityβ is your secret weapon.
Hereβs whyβ¦
Why Humility Matters
Near the beginning of October, I had an incredible run of trades that could tempt anyone to think theyβre unstoppable:
100% on NVDA*
102% on NVDA*
100% on NVDA*
200% on UBER*
155% on AAPL*
100% on GLW*
178% on GLD*
Thatβs 7 100%+ winners in a rowβ¦
Plus, my total October track record wasnβt too shabby either:
28 trades
23 Wins*
5 Losses
Win Rate = 82.1%*
Average Trade Result = 54.8%*
Average Gain of Winning Trades = 74.5%*
I think itβs fair to say that my results have been excellent recently.
And this is where a lot of traders will get overconfident. They may increase their position sizes or overtrade too many contracts at once.
But I know that getting too cocky can lead to disaster. If I think I canβt lose, my hot streak could quickly turn into a dry spell
This is especially true in the options market, where weekly contracts can lose 30%-50% of their value in minutes.
Thatβs why I always try to remind myself to stay humble, even when Iβm on a red-hot run of huge wins.
The truth is that those wins arenβt solely due to my trading chops. Skill and edge are crucial in the market, but luck also plays a big role.
And ultimately, itβs about the tools you use.
If it wasnβt for my Spyder Scanner, I wouldnβt have discovered any of these trades.
But even with the right tools, you need to have the right mindset β one that allows you to avoid the feeling of invincibility.
Here are three reasons why youβve gotta stay humble in the options marketβ¦
Accepting Uncertainty
Trading with humility allows us to accept the inherent uncertainty of the market.
The stock market is unpredictable. You never know whatβs gonna happen in a trade.
No matter how much research you do or how confident you are in your predictions, you can always be surprised.
And if youβre overconfident or incorrectly positioned, these surprises could ruin you.
But if you stay humble β knowing that youβre at the mercy of the marketβs fluctuations β youβll be better prepared to act quickly when your trade makes an unexpected move.
Learning from Losses
Humility also teaches us to view losses not as failures, but as opportunities to improve.
You will face losses in your trading β it’s an unavoidable part of the game. The important part is how you react to those losses.
If you approach bad trades with humility β analyzing your losses, understanding what went wrong, and adjusting your strategies accordingly β you can turn those losses into priceless lessons.
But if you think youβre invincible β blaming market sentiment, algorithms, and other traders when you lose money β your losses will be pure pain (with no benefit).
Risk Management
Another critical aspect of humility in options trading is risk management.
Overconfidence can lead to taking unnecessary risks, like putting a huge % of your account into a single trade (or ignoring stop-losses).
By all means, pat yourself on the back when you make a good tradeβ¦
But donβt continually bask in the glory of your wins, thinking youβre an unstoppable genius.
Stick to your risk management plan no matter what.
If you stay humble youβre far more likely to take a cautious approach β¦ a winning approach.
Emphasize the importance of preserving capital. Live to trade another day.
Before we go, letβs take a look atβ¦
π°The Biggest Smart-Money Bets of the Dayπ°
- $3.6 million bullish bet on ALAB 11/15/2024 $80 calls @ $3.60 avg (seen on 10/30)
- $3.6 million bearish bet on AMD 12/20/2024 $135 puts @ $3.68 (seen on 10/30)
- $3.2 million bullish bet on MRNA 12/20/2024 $55 calls @ $6.50 (seen on 10/30)
Stay humble,
Ben Sturgill
P.S. As we speak, Iβm preparing for what could be the biggest trading opportunity so far this year β earnings season.
Believe it or not, you can often see whether a company will beat or miss before the market catches on.
Thatβs exactly why I developed Earnings Edge, a specialized system designed to take full advantage of these massive trading opportunities.
For example: Earnings Edge projected a 95.9% earnings beat probability on Taiwan Semiconductor Inc. (NASDAQ: TSM) β¦ the day before its 10/25/2024 $195 call options exploded by 208%!*
TODAY, October 31 at 4 p.m. EST, my buddy Danny Phee is hosting a LIVE Earnings Edge Workshop to break down how you can weaponize this strategy during earnings season.
Seats are filling up quickly β Click here to lock in your spot before itβs too late!
*Past performance does not indicate future results
