Revealed: How to Minimize Risk and Maximize Profits

Posted On July 13, 2020 1:13 pm
By: Steve Smith

I get a lot of questions about how I stay so calm and emotionless when I am finding and putting on trades. The simple truth is, I stay calm because I know that the worst that can happen in a trade isn’t nearly the worst that can happen in life.

When I was a kid I loved sports. Basketball, skiing, swimming…. you name it and loved it. When I was 17 years old, I was body surfing when I broke my neck. I’ll share the specifics of the accident some other time, my point right now is what happened next. Obviously, I went directly to the hospital, where the doctor told me I was incredibly lucky to be alive, but I might be partially paralyzed for the rest of my life.

“We need to wait until the swelling goes down so we can assess the amount of damage. You may get all of your motor function back, or you may not. We just don’t know right now.”

That was terrifying. I had to wear a halo neck brace for 6 months while my neck healed. Thank God my neck did end up healing and I got all of my motor function back. However, I can assure you that for a 17-year-old kid, 6 months in a halo and partially paralyzed can seem like a lifetime.

Anyway, when I think about losing a trade – as much as I hate to lose – it doesn’t scare me because I remember what it was like to almost losing my ability to walk. In comparison, a losing trade is nothing.

The good news is, you don’t need to break your neck to stay calm while trading. You just need to set up your trade the right way. With limited downside risk and as much upside as possible…Preferably unlimited upside. I can show you how to do just that here, in a report I wrote about one of my favorite trades. I call it the Main Street Derivative.

Just click here and find out how I do it.

Tagged with: options trading

About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.