Good morning, traders…

Ben here. 

Last week, I talked about the “3 S’s of Options Trading” — speed, size, and speculation. These relate to practical considerations for trading options. 

Today, I’ll break down a new set of letters every trader should know about, “The 3 P’s”…

But first, we have to rewind. It all starts at the beginning…

I started trading 22 years ago in 2002. The journey hasn’t always been easy. Success didn’t happen overnight. 

I had to dig deep within myself to weaponize certain character traits before I felt like I’d “made it” as a trader.

At any point in my journey, I could’ve grown impatient, overtraded before I’d built a solid strategy, and ended up like the 90% of traders who lose money…

Instead, I stayed laser-focused on my goals. But I couldn’t have done it without a few crucial character traits — the “3 P’s”.

One is no more important than the other — each “P” plays a vital role in navigating the stock market’s ups and downs. 

So, without further ado, buckle up and get ready to discover the “3 P’s” that every trader needs…

Passion

Every success story in the stock market always starts in the same place — with a genuine passion for the market. 

Similar to an aspiring professional athlete or artist, you have a lot of competition in the stock market. 

Technically, your odds of trading success are low. Again, most aspiring traders fail.

But this is nothing to be afraid of. Take it from me…

As a newbie, I knew the only way to rise above the traders who lose was by wanting success more than anyone else. 

I had an unquenchable thirst to win in the markets, which was my first important step toward my eventual trading success.

As I write this, I can’t help but think back to my pre-trading days as a basketball player, where the same rule applied…

There were a lot of other players who wanted to get on the starting lineup. But by going above and beyond in practice, day after day, week after week, I proved to my coaches (and myself) that I had more passion for the game than others. 

Passion leads to skill, which often leads to success…

Once I discovered trading, I applied the same hunger for success to the markets as I did to basketball.

I knew I wouldn’t feel accomplished without taking a shot (excuse the pun) at trading once and for all. 

And it turned out that my decision to pursue trading was the best I ever made…

So, if you want to be a world-class trader one day, you need to ask yourself some important questions…

• Do you have the passion for trading required to weather hard times, tough losses, and brutal bear markets? 
• Are you more passionate about trading than anything else you do? 
• Do you want trading success more than anyone else you know?

If you answered yes to all of these questions, you’ve nailed the first “P” of trading.

Patience

The second “P” that every trader needs is patience. 

Certain trades will test your patience. 

You need to learn how to hold promising setups through sideways price action, slight red days, and potential opportunity costs.

Because if the trade hasn’t “done anything wrong” … you shouldn’t panic sell.

Additionally, many traders feel they need to make plays daily, causing them to enter trades they would be better off avoiding entirely. 

I take a different approach…

By narrowing down my trades to the best setups only, I find that they don’t come along every single day. 

Therefore, I get comfortable sitting on the sidelines until the right chart patterns, options volume, and market backdrop align to give me a beautiful setup. 

For example: In the first half of 2022, I traded much less frequently than usual. As the Fed hiked interest rates at a historic clip, I wasn’t seeing as many setups that “checked my boxes” as a long-biased trader. 

This turned out to be a good move as the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) dropped 19% in 2022 — the worst year for the index since 2008. 

This patience and discipline helped me avoid devastating losses while other traders blew up their accounts in a historic bear market. 

Patience is a virtue in the stock markets … harness it to your advantage.

Perseverance

Doing anything at a high level for a long time requires serious perseverance. 

It doesn’t matter if it’s a hobby, a skill, or a job; it takes a lot of mental fortitude to stick with a difficult task for that long. 

Trading is no exception…

Throughout my career, I’ve had many moments when I questioned my discipline and overall mindset. 

Make no mistake — the stock market will challenge you at every turn. You will face these tough periods yourself. And when you do, you must persevere. 

When things get tough in the markets, I always remind myself why I started and keep my mind focused on my goals. 

This way, I can maintain my mental longevity and avoid tunnel vision, which can be a mental trap for traders who focus too much on short-term results and individual setups.

The “3 Ps” have helped me survive the most difficult periods in the market. 

Now, I hope they can help you too.

Weaponize your passion for trading, practice honing your patience, and harness the perseverance to succeed in the long run. 

Now, before we go, let’s look at:

💰The Biggest Smart-Money Bets of the Day💰

• $4.5 million bullish bet on HPE 08/16/2024 $19 calls @ $1.85 avg. (seen on 6/11)

• $1.2 million bullish bet on AAPL 10/18/2024 $220 calls @ $4.99 avg. (seen on 6/11)

• $1.14 million bullish bet on PYPL 01/17/2024 $75 calls @ $4.55 avg. (seen on 6/11)

Happy trading,

Ben Sturgill

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*Past performance does not indicate future results