The Options Millionaire Episode 62 - How to Deal with Losses
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Nov 20, 2025 They talk about accepting losses as a normal part of trading and why trying to avoid them backfires. Practical trade planning is highlighted with a clear five-step checklist. Risk control and position sizing get attention, including selling puts and using premium strategically. Mindset tips stress moving on after a loss and focusing on long-term goals rather than short-term wins.
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Size Risk To Your Emotional Limits
- Know your personal limits and size risk so losses won't cripple you emotionally.
- Peter warns against promising a $5,000 loss you can't stomach and stepping outside your time-frame skill set to recoup losses.
Set Realistic Performance Expectations
- Set realistic performance expectations based on experience and conservative averages.
- Peter recommends planning contributions, factoring market returns conservatively, and avoiding unrealistic targets like 30% if inexperienced.
Expect Some Trades To Lose So You Stick To Your Plan
- Enter trades expecting some to lose so you stick to planned exits and avoid emotional salvage attempts.
- Peter describes a 90-day SPX gamble trade he placed expecting failure so he wouldn't pull it prematurely.