Wonderland Part 2

Wonderland Part 2

Posted On November 18, 2021 3:13 pm

I got quite a bit of feedback yesterday on my Wonderland article, so I wanted to clarify something.

Some people emailed in and said I sounded defeated.  

I thought that was interesting, so I went back and reread the article.  I don’t see it, but since some people wrote in I’ll address it.

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It’s not being a defeatist to point out the truth, even when the truth is not good.  

And the truth is we are in the middle of several manias.

This isn’t the first mania I have seen, and I suspect it won’t be the last.  

During the dot com bubble in the late ’90s, I can’t count the number of “multi-millionaires” I knew that were near-homeless 2 years later. 

For the years it was going on, it looked like online companies couldn’t be stopped.  But when it blew, it was over.  

And only a few people saw the crash coming.  Some people were intentionally blind to the truth, and some people were truly blind to the truth…

Either way, they all went down the same.

The same happened in the real estate mania that blew up in 2007/8.

There were countless multi-millionaire real estate owners – leveraged to the hilt – who suddenly found that their tenants couldn’t pay their rent.  And as a result, they couldn’t pay their mortgages. 

I also know a flipper who had to write a check to sell two houses.  Wiped out his retirement and he had to go back to work.

The houses were big, and the values had cratered.  

Luckily for him, he kept his professional licensing active even though he had retired from the pest control business.  

Thinking about these people losing everything right in front of my eyes makes me sad.  Worrying about it happening again in this mania concerns me. 

But recognizing the truth that we are in a mania doesn’t make me a defeatist. 

It just means I have enough experience to see what’s happening. 

Take Options360 on the other hand.  

If someone started with $10,000 when we launched in 2015, made all the trades – winners and losers…

Left all the money in the account the whole time and adjusted the sizes of their trades to represent their increasing account size every year…

Today that $10,000 would be approximately $288,200.  And much of that would be in cash and available, not tied up in assets that they couldn’t sell. 

Even the options contracts we have are liquid, so in the worst-case scenario, those can be sold with the click of a mouse. 

THAT is how you build wealth.  Not by jumping in on manias and trying to get rich quick.  

But by following strict trading rules and carefully picking your spots incomparably safe positions with a well-defined, predetermined downside. 

To Your Success,


PS.  Just in case you skipped to the end, I shared the stories of several people whom I saw lose everything in the dot com bust and the real estate bust, then I shared that someone who has been with me in Options360 since the beginning had the chance to turn $10,000 into $288,200.

That’s how you build wealth!  Start here for just $19.

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.