Good morning, traders…

Jeff here.

I’m sure you’ve heard the statistic that 90% of traders lose money.

There are many reasons why most people don’t succeed as traders. And after 25 years of professional trading, I’ve seen it all.

But most of these reasons can be narrowed down to one category…

Our human emotions — which help us in other aspects of life — go against everything required to trade effectively. 

This is why algorithmic trading robots owned by hedge funds have a better win rate than you or me — they’re emotionless trading machines.

But that doesn’t mean you can’t have massive success in the markets. 

Just look at Jack Kellogg…

He’s earned a staggering $12.6 million trading stocks, long and short. 

And TONIGHT, he’s revealing his Next Big Trade (which could be his most profitable play yet)…

Like Jack, you have to understand the common reasons why others lose money … and then work tirelessly to avoid those pitfalls in your performance.

Today, I’ll tell you why 90% of traders fail. That way, you can make sure you’re never one of them…

Reason #1: Falling Victim to Complacency

If there’s one trait you must avoid in the markets, it’s complacency.

I’ve seen complacency ruin more than a few promising would-be millionaires. And I think it’s a big reason why 90% of traders fail.

Let me tell you a story about a guy I worked with on Wall Street many years ago. We’ll call him Jerry. 

Jerry had a (seemingly) solid options-trading strategy that worked for a while … until it didn’t.

When his setup stopped working, he faced the biggest test of his trading career.

He needed to adapt to the current market conditions and leave his beloved pattern behind, at least for the time being…

But Jerry had become complacent. He couldn’t see that it wasn’t just “a few days of red.” 

In a way, he thought he was invincible. But little did he know, he was about to blow up his entire account.

Jerry failed to shift gears and instead doubled down on his worn-out strategy, losing everything. 

Today, he’s back working in a cubicle, probably dreaming of the life he could’ve had. 

I tell you this story not to discourage you from trading, quite the opposite…

Jerry’s story is a cautionary tale about market stubbornness and risk management. 

You must be nimble — ready to adapt to anything the market throws at you.

No setup works forever. Don’t get married to any pattern or position. 

And when a time-tested pattern eventually stops working (they all do), realize that it’s time to move on.

Reason #2: Failure to Expect the Unexpected

Over my 25 years in the markets, I’ve seen a lot of crazy price action that nobody would’ve predicted weeks, days, or even minutes earlier.

This has conditioned me to expect the unexpected, which is an attribute that has helped me win in the long run.

Let’s take the current market, for example…

If you’re positioned for the market to go up right now, make sure you wouldn’t get obliterated if it went crashing down quickly. And vice versa. 

You should always have a backup plan, which could come in a few different forms…

It can be a consistently hedged position, a stop loss, or a disciplined exit at a specific level. 

But I think there’s an even easier way to navigate periods of uncertainty in the stock market — by shrinking the game.

It’s easy to get emotionally overwhelmed in a market like this. When the news cycle is moving this quickly, it can be difficult to follow everything diligently. 

But missing one key piece of news in this tape could make you less efficient, less accurate, and more prone to human error.

Trying to come up with a long-term prediction based on the fundamental picture is extremely difficult to do right now.

That’s why you want to shrink the game, protecting yourself from one bad decision that leads to a brutal loss.

Some traders will try to be heroes in this tape and get even more aggressive as volatility is ramping.

But make no mistake — most of those traders will get destroyed.

Here’s how to shrink the game:

• Narrow your watchlist down
• Don’t overtrade
• Take smaller position sizes

If you do these three things, you’ll fare much better during unexpected reversals. 

Reason #3: Prioritizing Predictions Over Profits

Some traders get too caught up in making correct market calls … when their only focus should be earning a lot of money.

Traders in the first category often become part of the 90% that fail.

But as options traders, we shouldn’t worry about how often we’re right or wrong.

In the options market, how often you’re right matters far less than how much you make when you are right.

This is because of how asymmetrical the risk/reward relationship can be when trading options. 

You could make dozens of small losing trades in a row, only for one incredible winner to make up for all the losses (and then some).

Some of the biggest trades of my career have come right after demoralizing losses.

So, stop caring about being right … and start focusing on becoming wealthy.

Getting complacent, being ill-prepared for the unexpected, and always wanting to be right are three traits I see in the 90% of traders who fail.

On the bright side, these aren’t difficult to avoid.

And if you focus on the right things, you could be a part of the lucky 10% with the best job in the world. 

Happy trading,

Jeff Zananiri

P.S. This is your LAST CHANCE to act on Jack Kellogg’s Next Big Trade… 

Once this rare profit cycle begins, there’s no going back.

That’s why TONIGHT, May 9 at 8 p.m. EST, Jack’s discussing this next big trade and giving away a second trade idea … for FREE.

Jack’s top 28 trades have ALL generated 100%* or higher — with 12 soaring over 250%,* and 4 exploding beyond 600%.*

And the next one just might be Jack’s best trade ever…

Tonight’s the night — CLICK HERE NOW BEFORE IT’S TOO LATE.

*Past performance does not indicate future results