Merry Christmas Eve, traders…
Yesterday, I shared Part 1 of my 10 Commandments of Smart Money Trading.
The 10 Commandments that capture the foundation of my trading philosophy…
If you missed Part 1, you can catch up here.
Don’t skip ahead. These principles build on each other.
Today we’re covering Part 2:
The Final 5 Commandments Of Smart Money Trading…
Commandment #6: Don’t Trade Earnings Without An “Edge”
Earnings season is like catnip for options traders.
Stocks can move 10%, 15%, sometimes 20% or more in a single session.
Options contracts that cost $0.50 before earnings can be worth $5.00 the next morning.
The moves are irresistible.
The math is simple.
The potential is massive.
So traders pile in. They buy calls betting on a beat, or puts betting on a miss.
They convince themselves they can predict which way it’ll go based on charts, whisper numbers, and “gut feelings.”
Sometimes it works. You might get lucky and miraculously bag a 300% winner.
The other 80% of the time, earnings trades blow up in your face.
But you don’t want a coin toss.
You want an edge…
That’s where our Earnings Edge system comes in.
It doesn’t just “guess” on 50/50 outcomes. It uses six years of backtested data across more than 850 stocks to identify patterns that repeat with statistical significance.
It trusts the math.
The system scans historical price behavior around earnings to find stocks with proven track records of moving in predictable ways.
My colleague (and former rocket scientist), Mr. Anderson, has spent years refining this filter.
He’s backtested thousands of historical trading days.
He’s refined the models.
He’s built the infrastructure to scan hundreds of stocks in real time.
And the results speak for themselves…
Mr. Anderson recently grew a small account from $3,000 to $32,000 in 52 days by “Trusting The Math” … despite 8 brutal market selloffs.*
But you don’t need to be a rocket scientist to do the same.
You just need to follow the alerts, manage your risk, and execute when the probability is in your favor.
That’s how you turn earnings season from a sketchy gamble into your very own Earnings Edge.
Commandment #7: Play The Next Play
When you’re performing under pressure, you will mess up at some point.
That’s part of learning anything.
But if you fear losing too much, it kills your ability to move forward.
And if you can’t move forward, you’re toast.
Think about driving. You keep your eyes forward. You can glance in the rearview mirror to get information, but you don’t stare at it. You stay focused on the road ahead.
Same with trading. You can glance back at a losing trade to understand what happened (and should).
By all means, evaluate your 2025 trading performance. Note what you did right, and more importantly, what you did wrong.
But then, move forward.
If you keep staring at the rearview mirror, you’ll miss the next setup. You’ll hesitate on the next entry.
And eventually, you’ll convince yourself it’s safer to just stop trading altogether.
Keep trucking. Take the next trade. Play the next play.
Commandment #8: Your Head, Heart, And Hands Must Work Together
This is the holy trinity of trading psychology.
- Your head deals with decisions rationally…
Your head analyzes the chart. It recognizes the pattern. It calculates risk/reward. It knows whether the setup meets your criteria.
- Your heart deals with decisions emotionally…
Your heart feels fear when you’re about to enter. It feels greedy when you’re about to exit too early. It feels regretful when you miss a trade. It feels angry when you lose.
None of these “feelings” are productive. Don’t let your heart get in the way of…
- Your hands deal with decisions technically…
Your hands are the execution layer. They click the buy button. They set the stop. They close the position. They’re the bridge between knowing what to do … and actually doing it.
When these three parts work together, trading feels effortless.
And results improve immediately.*
You see the setup, you feel confident, you execute without hesitation.
Commandment #9: Trade Like The Terminator
Ever wondered why Wall Street builds algorithms (robots) to trade the markets?
The answer is simple:
Machines don’t have emotions.
They don’t panic when stocks fall. They don’t get overly excited when charts rally. They don’t get greedy, or nervous, or overconfident. Their hearts don’t get in the way of their head or hands…
The robots make decisions based on raw data. They follow strict rules. They’re completely free from the psychological traps that plague human traders.
Ideally, you want to trade like a hedge fund robot.
Think of yourself as The Terminator of Trading…
You have one mission and one mission only: to make gains in the options market.
No FOMO, no panic selling, no hesitation. Just cold, calculated decisions aimed at making the most money possible.
But of course, you aren’t a robot. You’re a human being.
And that’s why trading is so difficult for most people.
No matter how disciplined you think you are, there will come a moment when the market puts your emotions to the test.
At that moment, the question becomes: Will you let emotions drive your decisions? Or will you trade like an unstoppable machine?
Commandment #10: Enjoy Your Trading Journey
Most importantly, have fun.
Trading should be stimulating and fulfilling.
If you have to drag yourself to your desk at the crack of dawn, dreading your day in the markets, this gig isn’t for you.
Take it from me…
After over two decades of trading, I’m more excited than ever for Monday mornings.
If you aren’t twice as passionate about beating the market as the guy next to you, you have zero chance of winning.
Believe me, a positive attitude can meaningfully impact your 2026 trading performance.
Merry Christmas,
Ben Sturgill
*Past performance does not indicate future results
