Good morning, traders…

There’s an often-repeated rule, “Don’t risk more than 1-2% of your account on any single trade.”

It sounds reasonable…

But for most traders, it simply doesn’t work. 

Trying to fit those old rules onto today’s fast-moving options is like jamming a square peg into a round hole. 

Especially if you’re trying to grow a small account.

Many folks get stuck trying to force a tiny % onto option contracts that cost more than their “allowable” risk. They get frustrated, maybe even quit. 

But there’s a better way to think about how much money you put on the line. A way that fits real-world trading, right now, as markets keep changing.

Forget trying to stretch a few dollars into a meaningful options play while sticking to outdated advice…

Let Me Show You How To Gauge Your Risk Like A Pro, For Any Account Size…

Cost Isn’t Risk

Many traders look at the price of the option to gauge risk. 

“This contract costs $200, so that’s my risk.” 

But that’s not always true. Or, at least, it shouldn’t be true if you’re trading correctly. 

If you have a stop-loss in place, your real risk is how much you could lose before that exit. 

I recommend your stop be no larger than 30%. In that scenario, you only risk $60.

That’s the number you should focus on. Not the total premium.

It doesn’t matter if you buy a $2,000 contract or a $50 one. What matters is the dollar amount you’re prepared to lose.

Everyone’s Risk Tolerance is Different

Some traders panic at the thought of losing $50. Others have no problem risking $50,000. 

Risk tolerance isn’t just about your account balance. It’s about your head, your stomach, and your lifestyle.

If a losing trade makes you stop trading or double down out of anger, your risk was too high. 

Know your pain point before you click buy.

Keep a trade journal. Track not just losses, but how you felt during those losses. 

You’ll find your personal “max loss” pretty quickly.

The Small-Account Dilemma

For smaller accounts, the common 1-2% risk rule often doesn’t work. Got a $5,000 trading account? 1% is only $50. 

Most times, $50 doesn’t even buy one options contract. Forget a real position. 

This forces small-account traders to follow a different playbook. 

To actually play and grow a small account fast, you need to risk a bigger chunk. Probably 10% of your account on one trade. 

WARNING: This only works if you stick to disciplined stop-loss rules for every trade.

The idea is to find trades with huge upside potential but very clearly limited downside. 

• You look for high liquidity and Smart Money flow. 
• You enter a trade. 
• You immediately set a tight stop-loss.
• If your first buy costs $500 (10% of a $5,000 account), you only risk $25-$50 (5-10% of that $500 premium) on the first move before your stop hits.

Rinse and repeat this process. Take several small, tightly managed speculative options trades. 

Maybe the first few hit their tight stops for small losses. No problem.

If one or two of those trades take off in your favor, your small account could double or triple. 

Just like our Earnings Edge small-account challenge…

We already 3x’d a small account TWICE using my Earnings Edge system…*

Now we have a bigger goal…

$1000 → $5,000 by October 14.

And if we DON’T turn $1,000 into $5,000 by October 14th…

We’re giving everyone who joins our “$5K Blitz Challenge” an exclusive $5,000 value gift…

Completely FREE of charge.

5x or bust.

That’s how confident we are.

Want to see how we’re doing it?

Join Danny Phee TODAY at 10:00 a.m EST. 

And before you enter your next option trade, ask yourself:

• “What is the maximum dollar amount I can lose on this specific trade?” 
• “Am I genuinely okay with losing that exact dollar amount, right now, without it impacting my ability to sleep, my finances, or my trading confidence?”

If the answer to the second question is anything less than a resounding “yes,” you’re risking too much. 

When you know your true risk tolerance, you can stop enforcing rules that don’t serve you. 

That’s how you build confidence. That’s how you stick around long enough to become the trader you dream of being. 

Happy trading,

Ben Sturgill

*Past performance does not indicate future results