Revealed: Why You Win Some & You Lose Some

Revealed: Why You Win Some & You Lose Some

Posted On February 25, 2021 12:02 pm

I hate it when I have to exit a losing trade.  Still, sometimes proper portfolio management requires that we bite the bullet and take a small loss. 

That’s what happened in Options360 earlier this week.  We closed a trade in WMT for a $126 loss.  Not the end of the world, but I still don’t like it. 

That said, last week we closed 2 really strong trades…

FB for a 35% ROI, and…

INAQ for a 33% ROI.  

We were in FB for 3 weeks and INAQ for a little over 5 weeks. 

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If you talk to your financial planner they’ll tell you those kinds of returns are fools gold and you shouldn’t take on that much risk. 

But, when you look for yourself you realize that proper portfolio management allows you to find these kinds of trades without taking on unlimited risk.  

Heck, it’s not unusual to see our trades return 50%-60%, with a very limited and predetermined amount of risk!

But, in fairness to your local financial planner, we need to look at the overall profit or loss for the year.  

I mean really, who cares if we have a couple of great trades?

Well YTD, the Options360 portfolio is up 10%, winners and losers included. And we aren’t even out of February yet.  

Needless to say, Options360 subscribers are VERY happy with the results.  

To Your Success,



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.