🚨Save your seat!🚨
Thanks to a shocking anomaly in the options market, we can now target double-digit returns like 25%, 33% and even 66% over the weekend — find out how at noon on Thursday, when I’ll be live with Roger Scott [tap to save your seat]!
Before we get to it, the options market has changed, creating new windows to trade major stocks before the opening bell and respond to market-moving news with zero-day options. Join me Wednesday at 3:30 p.m. ET — we’ll cut through the noise, identify the edge and show you how to execute.
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Let me cut straight to what separates professional traders from people who eventually blow up their account.
It’s not some secret indicator. It’s not a magical setup. It’s understanding that the only thing you can really control is your risk. When you realize that, the entire game changes. Professional traders focus on risk because that’s what they can control.
Think about everything you can’t control when you put on a trade. You can’t control what the market does, you can’t control what sector gets rotated into, what direction anything goes, you can’t control delta, you can’t control theta or breaking news.
The market doesn’t care about your analysis or your conviction.
The only thing you can control is the amount of risk you put on the table. That’s it. That’s why professionals obsess over this — because it’s literally the only variable we actually command.
The Car Accident Framework for Risk Management
Here’s how I think about portfolio construction, and it’s going to sound completely unrelated to trading at first…
I can’t control what other drivers are gonna do, but I can control how fast I’m going. Getting into a car works the same way risk works in the market. I can control how well maintained my car is. I can control how fast I accelerate, how hard I hit my brakes, whether I’m watching my mirrors, using my blinkers.
Those are my controllable variables.
If I control those things really well, chances are I’m going to avoid any major accidents — but I want that to be a survivable event. That’s the point. You build your entire approach around ensuring that if something unpredictable hits you, the damage is limited and you walk away intact.
That’s exactly what risk management looks like in trading. If some truck comes by and T-bones me after running a red light, there’s not much I can do about that. But I can make sure the impact is something my portfolio can absorb without sending me to the metaphorical hospital.
You structure your account so that even the worst case is something you can survive.
What This Actually Looks Like in Practice
Let me show you how this plays out in real time with my own account.
Right now, because the market is all chop, my trades are mostly Morning Payout Plan and Bullseye trades. These are the equivalent of driving a well-maintained car at reasonable speeds — high probability of walking away clean.
I have very few other trades on — I have one Gamma Pockets trade and one Weekend Trading Club position, but those are designed so that if I get smashed on them, it’s not really going to hurt my account.
I’m going to be just fine.
That’s the entire framework. You can’t control the truck that might T-bone you, but you can absolutely control whether that crash is survivable or catastrophic. You do that by building your portfolio around the idea of survivability — anticipating the risks you can’t see and controlling the risks you can.
Most traders focus on being right. Pros focus on surviving being wrong.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. This New Weekend Trading Opportunity Stunned Me!
Thanks to a shocking anomaly in the options market, we can now target double-digit returns like 25%, 33%, and even 66% over the weekend!
Join Roger and me at noon ET on Thursday and you’ll get the details…
Including how you can join in on the very next opportunity.
