My kids came down from NYC to spend the week with me in hot and humid Florida. It had been six months since we’ve seen each other; the longest period since the COVID lockdowns. 

The first thing that my son, Ethan who turned 15 in April, said upon seeing me was, “I’m taller than you.”

I’ll let all of you be the judge…

My daughter Natalie, 17, just got her driver’s license, but doesn’t have a car to drive in New York City. So, I took her while she was here. She loved being able to practice on the roads down here, away from the clogged roadways of Manhattan. Against my better judgment, I also let her drive on I-95 when we went to visit my brother in West Palm.

Test drive my Options360 Trading Service for only $19!

She proved wiser, and more mature, than me when after two exits she said she felt uncomfortable as maniacs whizzed by, passing on both the left and right lanes going 90 mph or more. We pulled over and I took the wheel. I also let my son tool around the quiet neighborhood streets and he almost drove us into a ditch…

He was expecting a berating so he was relieved, as well as surprised, when rather than getting mad I calmly took responsibility and apologized for putting him in a risky situation.

There is a trading lesson here: As I’ve repeatedly said, much of the Options360 comes from mitigating risk. It’s important to know when to cut your losses in trades. Note – the most successful traders in the world have losing trades. They’re successful because they know when to admit they’re wrong and get out.

When it comes to managing risk, I aim to set up my Options360 trades with a 2:1 reward-to-risk. If I’m right 60% of the time, this would provide us with an 80% annual return. In fact, in 2021, we finished the year up 82%.

Over the past 7 years, Options360 has an average return of nearly 75%. 

Limiting losses is key to consistent returns. Remember the math; if you find yourself down 50%, it will take a 100% gain just to get back to even. That’s a tough hill to climb, even for the best traders. 

Take a lesson from my daughter, and don’t drive yourself — or your portfolio — into a ditch.

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