| | | | Here is something I need you to understand: in any trading approach, there will be losers. That is not a weakness in your strategy — it is just reality. But here is what most traders get wrong: they focus obsessively on finding the perfect entry while ignoring the money management principle that actually determines their success.
I am talking about level betting. And honestly, it might be the most important concept I can teach you.
What Level Betting Actually Means
The secret is simple: keep every trade equal dollars. Not equal contracts. Not equal risk percentages. Equal dollars.
Let me break this down with a real example. If you buy 10 contracts at a dollar, that is $1,000. That means every trade should be $1,000. If the next setup costs two dollars per contract, you buy five contracts. If it is fifty cents, you buy twenty contracts. The contract count changes, but the dollar amount stays locked.
This is not complicated math. But it is discipline most traders never develop.
Why Discipline and Sensitivity Matter
Real trading is not easy. It takes discipline and it takes a process. Level betting gives you that process because it forces you to approach every trade with the same structure and expectations. That consistency is what allows you to evaluate performance, adjust your approach and keep your emotions in check.
And when you are trading options, there is another layer most traders overlook — how sensitive these contracts are to small changes in the underlying. Their price can move fast, sometimes dramatically, with only minor shifts in the stock or index. Understanding that sensitivity helps you time exits, manage risk and avoid holding positions longer than necessary.
Remember, we are not marrying these options. We are dating these options. That means you get in with a plan and you get out with a plan. No attachment, no hesitation, no hoping something turns around.
Technology, Consistency and the Edge You Need
One of the biggest advantages you have today is access to technology that supports discipline. Alerts, automated position sizing and tools that track your trade metrics all reinforce the habits that level betting demands. When you pair a consistent dollar approach with the right technology, you remove guesswork and emotion from your trading day.
Level betting works across every strategy I teach. It does not matter if you are trading spreads, straight calls or puts or any other approach. The principle applies universally: keep every trade equal dollars.
This is the foundation. Get this right, and everything else — your entry timing, your technical analysis, your market reading — actually matters. Get this wrong, and none of that other stuff can save you.
If this kind of discipline-first thinking is how you want to approach the market, the TBUZ Weekly Trade Letter delivers it every week — clear levels, clean structure, and real market context — and you can get the full year for just $9.99 when today’s issue goes out. Click here to read more and get signed up
Trade to Win,
Tom Busby | | | | |
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