As we close out another year, it is a good time to reflect on options trading success. What went right – and what went wrong? (I prefer to think that I never lose; I either win or I learn.)
I like to look at the bigger picture of my trading year rather than individual trades. There is no question the good trades were far better than the bad trades for us in 2025. While our results were spectacular (our swing trading portfolio is up 52%, beating all indices by a wide margin), there are lessons we can carry into the new year and beyond.
Questions to help you reflect on options trading success
Did you maintain a calm attitude?
In this very difficult game of trading, you need to maintain your composure during difficult times but also be humble during the good times. If you choose to be boastful and greedy, the trading gods will strike you down with a harsh lesson. Was that you in 2025, or were you a humble servant?
What indicators and chart patterns helped you find big winners?
Since I first started trading options, I have kept a journal to help me understand what indicators and chart patterns were most reliable over the past year. What helped me find big winners? What helped me avoid a disaster? Make a note of these on a summary page in your journal that you can turn to in the new year.
Did you follow the proper risk management techniques?
You cannot grow your wealth without properly managing your risk. When I look back on 2025, I can say that yes, I took winners when I had them. I never traded more than I could afford to lose. And during times of uncertainty, I took a more conservative approach. This allowed me to keep a solid lead over the markets the entire year.
Did you use put protection?
Holding index puts reduces volatility in your portfolio. Even in a bullish year, market volatility will pop up. Remember when the markets dropped sharply in April? I had plenty of SPY and QQQ puts to weather that storm. In fact, those puts are one of the reasons our swing trading portfolio was up nicely in the first half of the year.
Did you size positions correctly?
Position sizing is one of my most important risk management important tools. In 2025, I refused to be greedy and instead learn from past losses on what not to do. I never put too many eggs in any one basket.
What are my trading goals for the new year?
Now it’s time to look ahead to trading in the new year. What lessons are you eager to carry forward? What will you stop doing?
While there is no way to predict where the markets are headed, having guard rails in place will help you through bullish and bearish trends. Cheers to a great new year!
