Reduce Your Trading Risk With the Right Strategy

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. Maria’s Note: Maria Bonaventura here, Rogue Economics’ senior managing editor. Today, we pass the pen to master options trader Jeff Clark. Jeff has traded options for nearly 40 years. And over his career, he’s used his own trading techniques to generate millions of dollars for Silicon Valley CEOs, pro athletes, and pension funds… Options are a great way to reduce your overall risk – and they require minimal upfront investment. So they could be a huge benefit to everyday investors during times of volatility like we’re seeing now. But in order to successfully trade options, you need the right strategy. That’s where Jeff comes in… --------------------------------------------------------------- Reduce Your Trading Risk With the Right Strategy By Jeff Clark, Editor, Market Minute [Jeff Clark] Most people say option trading is risky. Novice traders often don’t take the time to learn the right way to use options. They jump right in – thinking, “I got this.” They gamble, blow up their accounts, and then walk away penniless and swearing off options forever. Even experienced traders sometimes get caught up in the allure of fast gains. They overleverage their positions – take a bigger position size than they should – and then take a hit. All the option traders I know, including myself, have blown up their accounts at least once. Recommended Link [[DEMO] Penny or Dollar? (Not what you expect)]( Something odd is going on with our money. If you understand what’s going on, you could come out far ahead if you make the right moves. But if you don’t, you could be blindsided in the days ahead. According to Nomi Prins, PhD, this could be the most important story in the financial world in 2022… It has little to do with stocks, bonds, or cryptocurrencies… In fact, it all traces back to the humble copper penny. [image]( Knowing this secret could unlock the key to lining your pockets with cash in the months ahead. [Click here to see Nomi’s short demonstration.]( -- Risky Strategies But it’s not the option that’s risky… it’s the strategy. And when used the right way, options are far less risky than trading stocks. You see, most people use options the wrong way. Most people use options to increase leverage… to get more “bang for their buck.” In other words, most people use options to increase risk. That’s wrong. That’s the exact opposite of what options were designed for. The options market was created so investors could reduce risk. Options allow investors to hedge their positions… and to risk much less money than they would buying a stock outright. [Featured: Millionaire Trader Drops Bombshell… “The Only Trade You Will Ever Need”]( Let’s say you want to buy stock in Company X. It trades for $10 a share. You could put up $1,000 to buy 100 shares… But you can control the same amount of stock with one option contract. You can buy a contract for, let’s say, $50… and leave the other $950 in your account. If Company X’s stock goes up, you’ll make money. If the stock goes down, the most you’ll ever lose is that $50. That’s a 100% loss… but it’s a lot less than potentially losing 20% or more of the $1,000 you risked buying the stock. This is a simple example. And it’s the simplicity that proves my point. Options allow you to risk much less and profit just as much as buying stocks. Recommended Link [Watch Now: Don’t fall behind on this revolutionary tech]( [image]( All of the biggest tech companies in the world are already preparing for the end of smartphones… Amazon is also getting involved, and they’re planning to use this technology to change the way you shop online and receive their packages. So, think about that… Apple… Facebook… Google...Microsoft… Amazon... These are the biggest and most powerful tech companies in the world. These tech titans gave us smartphones… social media… search engines...personal computers… and online shopping… And now they’re all betting big on S.C.G. as the next major computing platform that will replace the smartphone. Technology is projected to grow from around $26 billion to $1.5 trillion... That’s a mind-blowing growth of 4,572%…. Enough to turn just $5,000 into almost a quarter-million dollars. [Don’t miss out! Click here to watch the reveal.]( -- Biggest Beginner Mistake But that benefit disappears if you overleverage the trade and take on a larger position with options than you would otherwise take with the stock. That’s the biggest mistake most novice option traders make. Instead of replacing a 100-share purchase with one call option, they take the entire amount they would have allocated to the stock and buy a much larger position with the options. Rather than buying one call option for $50 and leaving the remaining $950 in the bank, novice traders take the entire $1,000 and put it into buying more call options. They end up buying 20 call options to try to get more bang for their buck. What would have been a 100-share purchase has turned into control of 2,000 shares. [Featured: If you’ve got any money in a U.S bank account or retirement plan… Click Here]( Instead of using options to reduce risk, they’ve increased their risk 20 times. Losing 100% on an overleveraged trade would be a disaster. And it’s why most folks think option trading is dangerous. But it’s not dangerous if you trade options the way they were originally intended… as a way to reduce risk. Limit your option exposure to control just the number of shares you would normally purchase. Leave the rest of the money in the bank. Then it won’t be so bad to lose 100% on an option trade. It will almost always turn out better than what you could have lost on the stock. Recommended Link [#1 Most Trusted Crypto Expert Issues New Crypto Warning]( [image]( With all the volatility in 2022, Teeka Tiwari went on camera to issue a new warning: [“Missing the boom in this new digital asset]( could be the biggest financial mistake of your life.” If you have any money in cryptos, you must see this brand-new interview… Or you’ll risk missing out on one of the few bright spots in this volatile market. [Click here to get the details.]( -- You Can Safely Trade Options I’ve been using this strategy for decades. The simple fact is, for 20 years, I handled more than $200 million in Silicon Valley for some of the wealthiest CEOs in California. I’ve even managed accounts worth as much as $20 million apiece for entrepreneurs, startup founders, and professional athletes. And now, I want to help you safely and successfully trade options. Nothing makes me happier than helping everyday folks make money trading the markets – especially during economic volatility and market crashes. I’ve recorded a special video to show you how. In it, you’ll get a first-hand look at how it all works… as I teach my 22-year-old son Grant how to trade options using my strategy. You can watch my video by [clicking here](. Best regards and good trading, [signature] Jeff Clark Editor, Market Minute P.S. You can grab one of my top recommendations for free if you tune in to my video. It’ll be a great place for you to get started. [Just click here]( --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Reduce Your Trading Risk With the Right Strategy). --------------------------------------------------------------- MAILBAG [Last Friday’s mailbag]( has one reader thinking about big bank dealings… All officers of organizations, big and small, are required to sign forms with their annual audits as to the accuracy of the financial statements, and are legally and personally liable for any misrepresentations. Seems like someone could sue them into oblivion based on that alone. Plus, bank dealings in derivatives are the biggest crime. JP Morgan Chase carries at least one and a half times its book value in derivatives, and if things truly “go south” and the government does not bail them out (yet again), most customers will lose all of their deposits – FDIC cannot withstand such payouts, and depositors will be left holding the bag. All the other big commercial banks are in the same position, some better, some worse. Folks expect high stakes gambling from Wall Street, but not from “trusted” banks. Most folks would be shocked to learn that the big banks are literally high stakes gambling with their hard-earned cash in such a brazenly disrespectful way. It would be nice to hear more about large banks’ derivatives risk from writers such as you. – Don G. And finally, readers share what they enjoyed about [Nomi’s video update]( on the Fed’s allegiance to the markets… Nomi gives us a brief, but historically accurate description of The Creature From Jekyll Island, The Fed, and its true allegiance – the big banks and financial markets, not American citizens. Thanks, Nomi! – Mark B. I enjoyed the video. You really put the real economy in perspective to make sense of it all. You are very genuine and have motivated me to look into your books so I may know the real story. You have also calmed my nerves. – Justin T. What are novice trading mistakes that you have made as a new trader? What kind of experience do you have with trading options? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Reduce Your Trading Risk With the Right Strategy). IN CASE YOU MISSED IT… [Disturbing In-Store Footage Exposes $269 Trillion Financial Crisis]( Why are all these random shortages popping up? And why is everything getting so darn expensive? That’s what we set out to uncover [inside the aisles]( of this American superstore. As our chief crisis investigator Dave Forest explains: “In the coming days — we could go from empty shelves… to empty wallets… and most won’t know what hit them.” Inflation is only part of the story. The real threat, Dave says, is the [“Crack-Up Boom” coming to America.]( [Click here for full details.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. [An Insider’s Guide to Making a Fortune from Small Tech Stocks]( [How to Earn Free Bitcoin]( [The Ultimate Guide to Taking Back Your Privacy]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-681-1765, Mon–Fri, 9am–7pm ET, or email us [here](mailto:memberservices@rogueeconomics.com). © 2022 Rogue Economics. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Rogue Economics. [Privacy Policy]( | [Terms of Use](