What’s Your One Best Trade Idea Right Now?

With that said, I never fall in love with one trade.

In fact, I make it a point to never put myself in a position where one bad trade can wreck my trading account. That’s why it’s frustrating when people email me and ask what’s my best trade or idea right now.

Because I know becoming successful is a lot more than just one trade.

This type of question motivates me, because it tells me that I need to continue doing what I’ve been over the last several years… that’s helping individual investors by empowering them with the education needed to fearlessly take on the financial markets.

For me, it’s all about getting base hits and being consistent. You know, the most home runs Derek Jeter ever had in one season was 24… however, he’s had over 3,300 hits in his future hall of fame career. Consistency in the long run does pay off.

As sexy as trading off unusual options activity is… I mainly use it as an idea generator to structure trades that give me what I believe is an excellent risk to reward setup.

Too many investors want to use options as a get rich quick vehicle. Usually, after getting burned… they’ll come to me and ask how they use options for steady and consistent returns.

You see, after they realize that option investing is tough (at first)… instead of focusing on those monster-sized returns… they want the bleeding in their account to stop… becoming a lot more open to figuring out how they can take a little bit out of the markets each week.

It goes without saying…

… you’ve got to have reasonable expectations…

… your financial future is not a sprint… it’s a marathon

It’s true that buying options offers a convex payout… and if you follow the smart money for a long enough period… you’ll eventually hit a trade out of the park. However, putting the majority of your hard earned money on one single idea is not only dangerous but it’s also stressful.

Why?

If you’re heavy in one position… the chances of micromanaging increases. Your emotions will fluctuate as much as the stock price does… possibly causing you to make a mistake.

By not having your investments diversified… you won’t develop a feel for the overall market.

Your risk is concentrated and not spread out… sure if you’re right, you’ll reap the rewards… however, if you’re wrong… your trading account might be crippled for good.

I not only diversify and spread out my trades… but I also have other sources of revenue. That’s what creating wealth is all about.

And you know what?

I do all of my investments myself. Because I know that no one will care more about my financial future than me.

In 2008, when I was managing money for clients, I was so stressed because I had to focus most of my time helping clients relax during that time.

It took away my focus and started to take a toll on my account, clients & health.

I had to make a hard decision that I must come first.

You see, I’ve worked with money managers in the past… helping them implement option strategies that try to yield smoother returns for their clients.

But to be honest, they weren’t willing to make changes if it couldn’t fill up their pockets first.

Of course, this is very frustrating to here… and believe me, I was shocked and disappointed after meeting with these guys.

I know there is a small group of investors out there… wanting to take their financial future into their own hands-to take control and make their own decisions.

The individuals I’ve worked with know that a majority of these “pro’s” don’t have an advantage over us. In fact, the playing field is the most level it’s been in years. We have access to many of the same tools, data and education they do.

However, we have one major advantage.

Our goal is to make money from our investments. We are not trying to make our broker rich. On the other hand, the money manager is always concerned with getting new business and collecting fees. As you can see, a totally different objective.

With that said, we can afford to be selective with our investment decisions… unlike them… where volume and activity means more money in their pocket.

Of course, it’s not an easy task… and it requires some courage. However, by taking control of your investments… you’ll save more money from all the manager fee’s (you don’t have to pay).

Believe me, you don’t need them… especially since they’ve underperformed the market for years now.

So when I’m asked the question, “What’s my best trade idea right now?”

After I smile… I confidently answer “You”

Having individual success is great… however, sharing that wealth of knowledge and empowering others is something even better.