Good morning, traders,
Since today’s the Fourth of July and everybody’s celebrating, I thought I’d share some tips with younger traders that might save at least some of you a few years of heartache in the market.
Consider it a holiday bonus from someone who’s been there…
So, here it is: The biggest risk to your trading account isn’t the market.
It’s you.
I’ve seen this movie play out too many times: Someone jumps into options trading with excitement, a little cash, and zero preparation.
They might even hit a couple lucky trades out of the gate, and that’s the worst thing that can happen.
Because it gives them confidence they didn’t earn.
Then reality hits. They don’t just lose some money — they blow up their account.
Then comes the blame game.
“The market’s rigged.” “The Fed ruined everything.”
No, the real issue was never external.
It was internal.
If you’re new to trading, or still not consistently profitable, there are some potholes you must avoid if you want to last more than a few earnings cycles.
Let’s fix these common issues before they sink you.
1. Trading Without a Plan
If your “strategy” is based on vibes and Reddit threads, you’re going to get smoked.
Every trade should have a clear entry, a defined risk, and an exit plan.
Winging it is how traders get wrecked. Structure beats spontaneity every single time.
2. Going Too Big, Too Fast
I can’t tell you how many traders start out risking half their account on one trade.
They win once and think they’re a genius.
Then the second one goes south, and suddenly they’re down 50%.
The math doesn’t lie. If you’re down 50%, you need to make 100% just to break even.
Don’t let that be you.
Keep your position size small, especially when you’re still learning.
3. Chasing the Hype
Every week there’s some new “must-own” stock.
Something that’s “going to the moon.”
Don’t take the bait. If it’s already a trending topic, you’re probably too late.
The real edge comes from setups that aren’t being screamed about on social media.
4. Ignoring Volatility
Options pricing isn’t just about direction, it’s about volatility.
If you don’t understand how implied volatility works, you’re flying blind.
For example, buying calls ahead of earnings might seem smart … until you realize IV collapses right after the announcement, and your premium evaporates, even if the stock goes up.
5. Overtrading
More trades don’t mean more money.
In fact, that usually means more losses and more stress.
Patience is a skill. Let the trades come to you.
Some of my best weeks had only one or two solid trades.
Less action, more precision.
6. Getting Emotional With Trades
Sometimes traders fall in love with their losing trades.
They justify holding, hoping the market turns around.
Meanwhile, the loss gets worse.
On the flip side, they cut winners too fast — afraid they’ll give it back.
You’ve got to flip that mindset. Cut your losers fast. Let your winners breathe.
7. Not Learning From Mistakes
Losing trades aren’t failures, they’re feedback.
But only if you’re paying attention.
Track every trade.
What was the setup? Why did it work, or not? What would you do differently?
This is how real growth happens. You can’t improve what you don’t measure.
Brutal But Manageable
Trading can be brutally honest.
It doesn’t care about your opinion, your hopes, or your ego. It rewards discipline and punishes recklessness.
But if you can avoid these landmines, you’ve already separated yourself from 90% of the herd.
Trade smart. Stay humble.
And remember: This game is winnable, but only if you respect it.
Stay street smart,
Jeff Zananiri
P.S. Saturday at 4 p.m. ET, Aaron Hunziker will talk about the fastest-growing opportunities in the market right now:
These contracts move like lightning and hit big. Learn to trade them the right way.
👉 [Save your seat now — before space fills up.]
