Many of you know my approach to trading is hinged on leveraged assets.

When it comes to investing, on the other hand, I’m looking for that slow and steady growth factor.

But when it comes to trading, I’m in it to win it. Fast and hard.

I want to identify a high-probability setup, load into it and make the most amount of money in the shortest period of time possible.

Why? Well, I’m always after the maximum return.

And the less amount of time I’m in a position, the less likely that some outside force has the opportunity to disrupt it.

For example, I was long crude oil when the Omicron strain hit the headlines.

My analysis was correct. The price still did what I had anticipated it to do, but it took a bit longer due to the disruption that was accompanied by that new strain.

This is the downside when you hold a position for a longer period of time… You can run into uncontrollable factors that reflect in the performance of your trades.

The upside to a leveraged position is that it offers a lower cost to potentially make a higher gain.

But that comes with the potential for a leveraged loss as well if the trade doesn’t go your way.

This is the very reason you want to take the lowest-risk, highest-probability trades possible.

Are you always going to be right? Absolutely not! Anyone who tells you they’re always right is flat out lying to you, and personally I’d run away from them immediately!

But for me personally, I take an ULTRA CONSERVATIVE approach to my positions. So, if I’m going to trade, I want the opportunity to get the most out of each and every trade.

When it comes to buying the underlying asset, I prefer to trade futures contracts for shorter periods of time.

When it comes to a trade that I anticipate will last a longer period of time, I prefer to buy the futures options…

Because, again, in the case of an omicron event, we don’t want to be caught with too much exposure during something that we just can’t control.

Buying call and put options limits the potential loss to the premium paid for those options should the world be turned upside down while holding a position.

It’s a great way to control risk exposure and, at the same time, get that leveraged return opportunity!

Rules to Live By

“May you live every day of your life.”
― Jonathan Swift

Until next time, I wish you a beautiful and blessed day!

Yours In Trading Success,

Anthony Speciale Jr.