Good morning, tradersā¦
Thereās one trait, above all others, that separates the winners from the losers in the options market.
Iām not talking about after-hours studying, waking up earlier, or marking up your chartsā¦
The difference comes down to something much simpler.
Itās about knowing exactly what youāre looking for every time you trade.
Not sort of, not maybe. Precisely.
You need specificity ā the ability to spot your go-to setups like the back of your hand (and avoid everything else).
Most traders canāt grasp this. They chase anything that ālooks good.ā Or worse, they jump into trades because the name is popular on social media and they have a fear of missing out (FOMO).
And while that might work once or twice, itās not a recipe for long-term success. Itās a recipe for disaster.
Meanwhile, consistent winners have a very different approach. Theyāre like hunters, patiently waiting for the right moment to pull the trigger.
Theyāre clear on their game plan, disciplined in execution, and completely unbothered by the thousands of trades they pass on.
Today, Iāll show you how harnessing specificity can completely transform your trading for the betterā¦
Why Specificity Matters
The best traders I know are some of the most discerning people Iāve ever met.
Theyāre not just looking for trades that might make money. Theyāre calculated. Theyāre hunting for the trades that fit their specific game plan.
They know their ideal setup inside and out:
- What the chart should look likeā¦
- Where the stock is trading in relation to its support and resistanceā¦
- How volume should confirm the moveā¦
- How much risk theyāre willing to take on the tradeā¦
- Where their stop loss will be before they even click āBuy.ā
And if a trade doesnāt tick every box on their checklist, they pass. No second-guessing, no FOMO, no regrets.
This level of specificity does a few things for you:
- It keeps you out of bad tradesā¦
Youāre not throwing darts in the dark ā youāre only taking trades with a higher probability of success.
- It eliminates emotional decision-makingā¦
When you know what youāre looking for, you donāt hesitate or second-guess. You trust your process.
- It leads to a repeatable and consistent processā¦
Consistency is the secret sauce of trading success. And you canāt be consistent if your setups are all over the place.
How to Build Your Trading Checklist
Recently, I talked about the importance of making a checklist for every potential trade.
These are the three factors Iād look for:
Checklist Item #1: Smart Money Volume
The first thing I look for is volume, but not just any volumeā¦
I want to see massive trades from institutional Smart Money players. These arenāt random bets, they signal that big players have high conviction in a move.
If I see millions of dollars pouring into a single options contract on my OMEN Scanner, I know itās time to pay attention.
But volume alone isnāt enough to get me into a tradeā¦
Checklist Item #2: Confirmation on the Chart
The chart confirms whether Iāll take action.
Iām looking for key support and resistance levels to hold or break as expected.
For example, if a stock breaks above resistance and holds it as new support, thatās often a strong signal to consider.
Similarly, if itās bouncing off a known support level on lower-volume pullbacks, it might be setting up for a move higher.
If I donāt see a great pattern on the chart, I pass. Smart Money volume by itself doesnāt mean much.
We need both.
Checklist Item #3: News Catalyst
A news catalyst (while not required) is a bonus for any potential setup.
It might be earnings, sector news, or a major event that adds momentum to the trade.
When all three criteria align ā volume, chart, and catalyst ā itās a setup I can trade with conviction.
Notice how specific that is. I know exactly what I want to see before I pull the trigger.
Now itās your turn.
Take some time to review your recent trades. Which ones worked best for you? What patterns or setups stood out?
Build your checklist from those. And once youāve proven that it works, stick to it.
Recognizing āNo-Tradesā
The other day, I saw a stock making a big move. It had some news behind it, momentum was strong, and the price action was tempting.
I almost jumped in, but something didnāt sit right…
The volume wasnāt quite what I like to see on a breakout. And it hadnāt closed above resistance yet. It was just testing it.
So, I passed.
The next day, the stock tanked nearly 10%…
If Iād gone against my rules and jumped in because I didnāt want to miss out, I wouldāve paid dearly for it.
But by sticking to my checklist, I avoided an unnecessary loss.
This is the kind of discipline you need to develop if you want to make consistent money in the options market.
Itās not easy, but the more you trust your process and stick to your checklist, the easier it gets.
Why Less = More
Most successful traders make the majority of their gains on a few big wins each year.
In other words, they donāt make their money from trading more ⦠they make it from trading better.
Theyāre picky. They wait for the best setups. And theyāre perfectly okay sitting on their hands if nothing fits their criteria.
I want you to be just as picky with your trades.
Be a hunter, not a scattershot. Build your checklist, and donāt stray from it.
You donāt need to catch every move to win at trading, you just need to catch the strongest and most high-probability moves.
Happy trading,
Ben Sturgill
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