Happy Friday, traders…
I laid down a challenge for you yesterday…
Trading comes with a mixed bag of emotions, obligations, and skills. And I asked you to take a minute to reflect on what trading baggage you carry around.
The truth is, trading can be as simple or as complex as you make it. Or as sophisticated or elementary as your experience allows.
But tell me: when you started trading, did you really want to learn how to read 10-Ks, macroeconomic reports, and foreign currency charts?
I’m guessing not. I’m guessing you wanted to make money, first and foremost.
And that’s fine. But you’ll never make money if you don’t master the basics first.
Take it from me. As a former Division I basketball player, I know a thing or two about the importance of fundamentals.
One time, my failure to internalize those critical rules cost my team a critical win…
Let’s make sure that never happens in your trading…
Stop Losing at the Buzzer
When I first started learning basketball, I couldn’t stand all the little rules my coaches nagged me about.
“Keep your knees bent.” “Don’t cross your feet on defense.” “Always box out.”
At the time, these felt like nitpicks, like a waste of energy. I just wanted to take shots, throw down dunks, and stuff my opponent into next week.
Then came a game I’ll never forget…
I was playing center, and we were tied in the fourth quarter of a season-deciding playoff.
With seven seconds remaining, the other team put up a desperation three. It missed, bounced off the rim, and I watched it sail right past me.
I hadn’t boxed out.
The guy I should’ve been guarding crashed in, grabbed the rebound, and laid it in at the buzzer.
I looked up at the scoreboard. We lost. Just like that, our season was over, steps away from the championship.
There I stood, with my hands on my knees, the gym going silent on our side of the court, and it hit me like a ton of bricks…
All those little rules I ignored? They mattered. A lot. In fact, they were the difference between going to the finals and facing a brutal realization:
I hadn’t worked hard enough. I hadn’t ingrained the fundamentals I needed to succeed.
And I don’t want you to make the same mistakes in trading.
6. Look Beyond the Numbers
In trading, understanding human behavior is more important than anything.
Why? Because people buy and sell stocks and options. And people are driven by emotions — such as fear and greed.
More than anything else, stocks move based on the collective emotions of market participants.
Knowing this, try to get inside the heads of other traders, institutions, and market makers.
Try to understand what they might be thinking and feeling during a particular trade, and you may find it gives you a better view of your own setups.
7. Build Relationships
Trading is an individual sport, but that doesn’t mean you shouldn’t build relationships with other traders — quite the opposite.
By harvesting a community of like-minded trading friends, you can get multiple opinions on your ideas.
Share insights, discuss strategies, and learn from one another.
REMEMBER: Even though trading is mainly a solo endeavor, that doesn’t mean you can’t get help. We’re all in this together.
8. Stay Calm Under Pressure
Wall Street can be wild. Some days will feel incredible, and others … well, not so much.
But remember to stay calm, even when things get tough. Panicking won’t help, but some traders crack under pressure.
You can’t let this happen to you. When you’re truly following your rules and planning every step ahead of time, trading should feel kind of boring.
If you feel your heart rate rising, you’re taking too much risk. Take a deep breath, reassess, and then make your move.
9. Set Realistic Goals
Ask yourself: “Why am I trading options?”
Maybe you want to make some extra cash, or maybe it’s a potential full-time career for you.
Whatever it is, set realistic goals that are clearly defined and measurable.
Instead of a vague goal like “make millions,” work towards practical milestones.
Example: “I’ll make 20% profit on five trades this month.”
10. Treat Trading Like a Business
How you handle your trading outside the charts often determines your long-term success (or lack thereof).
You’re the CEO, CFO, and CIO of your own small trading company … so, act like one.
That means paying close attention to tax planning, tracking expenses, keeping records, and paying yourself an “owner’s draw.”
This is a part of trading that doesn’t get talked about much. But it’s where your wins start turning into real income, real progress, and real gratification.
Trading might not come with a storefront or a time clock, but it’s still a business. And the more seriously you treat it, the more consistent your results will be over time.
By taking these rules to heart and enacting them into your game plan, you can avoid the pitfalls that plague most aspiring traders.
I’m telling you these things because I wish I knew them when I was first starting…
Write these lessons down. Pin them to your monitor. They should be so ingrained in your psyche that you’re reciting them in your sleep.
Happy trading,
Ben Sturgill
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