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How Hot Streaks Can Burn You Down

by | Aug 5, 2022 | Options

We are coming off of one of the hottest Julys on record…

And no, I’m not talking about the weather, I’m talking about trading, baby!

Our Weekly Blitz Alerts strategy booked nothing but winners over 12 straight trades in July!

No one can improve on perfection, but we’re going to keep running up that 67.7%** lifetime win rate for as long as possible!

Those of you reading Blitz Daily likely already know about our bearish trade on the “failing” New York Times Co. (NYSE: NYT) — those Aug. 19 $32 puts reeled in 61%* overnight, well above our lifetime 14.7%** weighted average return and eight-day average hold time!

There’s no better feeling than having the hot hand and hitting wins on trade after trade.

But as exciting as it is, it’s also a recipe to wind up biting off more than you can chew, unless you keep your options position sizing in check…

Options Position Sizing & Risk Management Always Matter!

Hot streaks feel great, but they can also be dangerous for your account…

When you’re in the middle of a great run, it can be easy to get caught up in the euphoria.

Even seasoned traders can be tempted to ignore the fundamentals of options position sizing by making bigger and bigger bets when it feels like nothing can miss.

Pushing size because you’re on a hot streak is a quick way to see all your profits go up in smoke.

That’s why I consistently hammer home the importance of using proper options position sizing…

Because if the worst happens and the trade goes to zero, we don’t want to go from the top of the trading mountain straight back to the bottom…

Check out the clip and let’s talk about options position sizing and listen to Jeff Z and me share some different opinions on the best ways to handle a hot streak.

P.S. Did you see what I just offered?

People in my office are in shock… 

They can’t believe I’m giving away the code to this Master indicatorand Master Scan — for such a cheap price! 

So… if you want to put the Master Indicator to work for you…

If you want to use it to help validate trades you’re already making while also being spoon-fed brand-new ones…

I Slashed the Price, So Click Here!

*Stated results are atypical for given period. Past performance is not indicative of any future results. Trade at your own risk.

**Not indicative of any future results. Trade at your own risk.

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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