What to Do When You Have a Setback While Trading

What to Do When You Have a Setback While Trading

Posted On April 5, 2021 2:46 pm

Loses are an inevitable part of trading. 

No matter how good you are, no matter how much experience…

No matter how well you research a chart of a company’s fundamentals…

You will experience losses.  

Still, even after 40 years, it’s the hardest part for me as a trader.

I enjoy everything else about trading, but when I lose money I hate it.  

When I do have a losing trade, I keep in mind that we don’t build wealth with one trade.  We build wealth by making good trades and mitigating downside risk.  

Of course, I am writing this because we closed a losing trade in Options360 today and I am really upset about it.  

However, over the last month we have also closed these trades:

  • 52% ROI in COST over a 3-day time span
  • 28% ROI in MILE in 16 days
  • 43% ROI in less than 3 weeks in PHM, and
  • 225% ROI in just 8 days in SPY…

 And the losing trade from today was mitigated…

It could have been a virtual “bloodbath” if we hadn’t structured the trade like we did.

Further, when I realized that my underlying thesis of the trade had been violated, I didn’t try to fix it, we just closed out and took the loss.  

I hate it when I am wrong – but considering that Options360 is up 24.2% in the first quarter of 2021, we are making the right decisions overall.  

If you missed out on the host of amazing trades in the first 3 months, it’s time for you to get on board now.  If the first quarter is any indication – and I believe it is – this is going to be a record-breaking year for Options360!

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.