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What Mr. Miyagi and Daniel can teach us about the slow, steady road to success -- even in the high-adrenaline world of big, triple-digit options wins. [Schaeffer's Logo]( Dear Trader, Over the last week, we've let you in on some of our best insider tips for trading options profitably. But with nearly four decades in the equity derivatives business under our belt, it's safe to say we've only scratched the surface of the expert guidance we can share to take your trading to the next level. And don't forget, your trial offer expires today! Read on to learn my last, most critical piece of advice for your options trading -- [then claim your full month of trades for just $10!]( [Learn More]( [An options trading lesson from the Cobra Kai dojo]( Over the past week, we've talked a lot about options selection, and implied volatility, and sentiment, and contrarianism... but one thing we haven't discussed yet is the importance of following the system. You've seen The Karate Kid, right? (Hang with me for a second; I promise I'm going somewhere good.) Well, recall that Daniel gets frustrated because Mr. Miyagi seems to be wasting his time and energy with menial physical chores ("wax on, wax off") that don't seem to have any connection to his overarching goal of becoming a martial arts master. But in the end, it turns out (spoiler alert, with apologies) that the discipline and muscle memory acquired during those frustrating, repetitive tasks actually provided Daniel with precisely the skill set he needed to win the big karate tournament, and become the hero of a beloved cult '80s film. All Daniel had to do to achieve his goals, whether he knew it or not, was follow the system. And it's the same way with trading options... Let me explain. [This is the part nobody likes.]( When financial reporters sit down with famous billionaire investors to ask them the secrets to their success, everyone's hoping for an easy trick they can steal. You know, something along the lines of, "Only invest in companies that start with the letter B when the second Tuesday of the month falls on an odd-numbered date." In reality, the underpinnings of real-life investing success are far drearier -- and for some, they're roughly as pleasurable as a trip to the dentist's office. So, with apologies to those of us who embrace options trading for the pure thrill of it, I'm talking here about the importance of adhering to a strict, sound, disciplined money management system. Because, when we're talking about options trading -- where you can be successful with a win rate as low as 35%! -- it turns out that the way you manage your trades is paramount. [5 rules you should never break]( We've already written a complete guide explaining our recommended money management principles, along with statistics and probabilities on win rates and losing streaks. It's essentially a "cheat sheet" to manage your options capital responsibly, and helps you make the most of either an options subscription service or your own DIY trade ideas. Every subscriber to one of our Schaeffer's options recommendations services receives this how-to guide with their subscription. But if we had to distill those pages of information for you here into just 5 rules of thumb, we'd say: - You should play calls and puts only with dedicated trading capital -- never with your savings, next month's mortgage payment, or any other cash you can't afford to lose. Not only is this good common sense, but it helps to keep irrational emotions out of your trading decisions. - Never risk all of your trading capital at one time or throw all of your available capital into a single trade. The ideal investing approach should combine a mix of stocks, options, bonds, and cash, with exposure to a variety of sectors and a mix of bullish and bearish trades. The idea is to position your portfolio in such a way that you're not overly vulnerable to a downturn in stocks or weakness in any one particular sector. - Determine your target exit points on each trade, and don't stray from those goals. Before you enter that initial trade order, you should already know your target profit and maximum acceptable loss on the position. In the heat of the moment, emotions such as fear, greed, and excitement can be the root cause of poor decision-making. Creating a concrete plan can help you avoid these common pitfalls. - Adhere to a maximum entry price (or, for option-selling strategies, a minimum entry price). The price at which you enter each trade plays a crucial role in determining your ultimate profit or loss on the position, so it makes sense to determine -- in advance -- how much you're willing to pay for the option. To help you stick with this rule, use limit orders instead of market orders to control your entry price. - Make the principle of convexity work for you by dedicating a fixed percentage of your capital to each trade. Assuming you commit 10% of your available investing capital to each position, you'll be plowing more dollars into each trade after a winning streak, while fewer dollars will be at risk after each loss. Follow this system faithfully, and you'll be able to navigate hot streaks and dry spells with equal grace. And we'll consider it all in a day's work here at Schaeffer's. [Learn from our experience.]( We know that we've given you a lot to think about over the past week. But there's no better way to hit the ground running with options trading than to connect with us. We've got all the expertise and know-how you need to raise your investing game to the next level with confidence. Give us a call any time if you have questions, or contact us online via email or chat! And we want to give you one final chance to use our experience to your advantage through our limited-time VIP offer. Schaeffer's Weekend Trader Alert issues a new options recommendation every week, based on our proprietary Expectational Analysis® methodology. This approach targets stocks that are poised for big breakouts, because investor expectations are way out of line with the price action. Every Sunday at 7 p.m. ET, you'll receive a detailed commentary explaining the rationale behind our latest trade. Each pick is a simple call- or put-buying recommendation, with a few months of time until expiration -- just enough for the expected price move to play out. Plus, these trades are carefully selected to give you the most bang for your buck. We carefully assess the implied volatility levels on each option to make sure we never overpay for a trade. And we provide everything you need to manage the position, including a target profit and time-stop date. You're never left wondering what to do -- we'll guide you every step of the way, with updates on the portfolio arriving each Sunday night with your new trade. And for today only, we're giving you one more day to claim your invite-only VIP offer and [join Weekend Trader Alert at a huge discount](. Don't miss out on this rare opportunity to take advantage of our powerful, full-service recommendations at a huge discount! Typically, a month of Weekend Trader Alert retails for $149, but if you claim your place by midnight, you can still claim a full month of these exciting, beginner-friendly trades for just $10. That's an average of 4 of our fan-favorite trades for just $2.50 each! But this offer won't last forever... or even past midnight! If you're ready to take full advantage of the wildly profitable world of options, [join us now!]( [Act Now!]( I look forward to trading with you, Bernie Schaeffer Chairman & CEO Schaeffer's Investment Research service@sir-inc.com []( 1-800-448-2080 1-513-589-3800 International P.S. Option selection can make or break your trade -- and my team are the experts! [Capitalize on our experience today with this limited offer.]( 5151 Pfeiffer Rd Cincinnati, OH 45242 If you didn't create an account using this email address, please ignore this email or [unsubscribe](. To ensure delivery of this email to your inbox and to enable images to load in future mailings, please add enews@schaeffer.com to your e-mail address book or safe senders list. Although there is significant profit potential associated with buying options, there is also the risk of losing one's entire investment in any individual trade. In any option buying approach, it is expected that losing trades will be more numerous than winning trades. The goal is for the average gain to be significantly greater than the average loss so that the bottom line is profitable. Prior to purchase, ensure that you have a broker that allows the trading of options and that you are approved to trade options.