Why most options traders lose money (and it's not their strategy)
I've been trading options for years, and the pattern is always the same: the traders who blow up accounts aren't bad at picking direction. They're bad at two things nobody talks about — position sizing and exit discipline.
Here's the math nobody shows you: if you risk 10% of your account per trade, you only need 3 losers in a row to be down 27%. Most people size based on "how much I want to make" instead of "how much I can survive losing." Flip that equation and everything changes.
The second killer is exits. Everyone has an entry plan. Almost nobody has an exit plan before they enter. I write down my exit — both the stop and the target — before I place a trade, not after. If you're entering a position without knowing exactly where you're getting out, you're not trading, you're hoping.
The traders who actually compound gains over years do three boring things: they risk 1-3% per trade, they know their exit before entry, and they journal every single trade to find their edge. None of this is exciting. All of it works.
If you want to see this process applied in real time — actual entries, exits, and the reasoning behind them — that's exactly what I post daily. Happy to answer questions on sizing or exits below.
