The Hidden Trap of Chasing Returns: Why Risk Awareness Defines True Trading Success

I’ve been at this for more than two decades, and one thing still baffles me.

It’s not volatility. It’s not earnings season surprises. It’s the complete lack of risk awareness among traders chasing performance.

Every cycle, I see the same thing: people beating their chests about returns when the market has been handing them wins on a silver platter. And every cycle, those same voices disappear the moment volatility shows up and reminds them that risk didn’t vanish, it just hid behind a bull market.

Let’s be real: if you’re pointing to 2021 or 2023 or 2024, or any year where the market is higher by what has been the average since 2009, ~15%, as proof of your skill, you’re telling me nothing. Most stocks were up big. Even basic index funds crushed it. That’s not alpha. That’s tide. And when the tide rolls back, we find out who’s been swimming with leverage and zero discipline.

The real question is this: what happened in 2022, when the S&P 500 dropped 19.4%?

More importantly, where were those so-called 100%, 200%, even 300% “per trade” gains that many marketers of financial publications love to promote? Did those strategies hold up when the tide went out? Or were those numbers just cherry-picked from bull market conditions to sell a dream?

Because when markets fall, reality shows up. And most of those claims don’t survive contact with a drawdown.

Stop Chasing Headlines, Start Studying the Math

Look, I get it. 100% returns in a single year are intoxicating. But if you’re selling premium or trading high-beta setups without understanding the real drawdown risk, you’re gambling, not managing money.

Between 2009 and 2021, the S&P 500 posted average annual gains of nearly 19%. It was one of the greatest bull runs in market history. And many traders, professionals included, mistook that tailwind for talent. They ramped up risk without beta-weighting portfolios. They ignored volatility clustering. They traded like the good times would never end.

Then came 2022.

The S&P dropped nearly 20%. Bond yields spiked. Volatility returned. Suddenly, those “easy” strategies weren’t working. Accounts got cut in half. And the truth emerged: the risk side of the equation had been ignored.

Real Strategies for Real Markets

I’m not here to dump market predictions. I don’t believe in crystal balls.

I believe in probability, process, and transparency. And I believe most traders would benefit from forgetting about chasing home runs and instead learning how to manage sequence risk and smooth their equity curve.

High-probability options strategies, like credit spreads, PMCCs, and cash-secured puts, aren’t sexy. But they work. They deliver repeatable edge in both trending and choppy markets, especially when layered and combined into a broader portfolio construction framework.

The key isn’t how much you made in a bull market. It’s how much risk you took to get there, and whether that risk was even appropriate for your capital base, time horizon, and temperament.

Doubling Your Account in a Year? Let’s Be Honest.

I’ve had people come to me with $250K asking how to turn it into $500K in 12 months. My answer never changes:

You can’t. Not without risking everything. And anyone who says otherwise is lying to you.

Sure, you might hit it once. But the math will catch up with you. Every high-risk setup comes with a blow-up tail. And unless you’ve prepared for that outcome, mentally, financially, and strategically, you’ll eventually give back every gain and then some.

Your Real Edge Is Discipline, Not Speed

Risk management isn’t just for hedge funds or retirement accounts. It’s the core of professional options trading.

You want to be a successful individual investor or trader? Then act like it. Know your max drawdown. Beta-weight your trades. Understand what your portfolio is exposed to, not just in terms of sectors or tickers, but in terms of volatility and leverage. And stop worshiping the outliers who posted 300% returns in bull runs without ever showing you their risk curve.

Because here’s the truth: if you can’t outperform in sideways markets or navigate downtrends with poise, you’re not a strategist. You’re just lucky. And luck runs out.

Going Forward: What You’ll Learn Here

Over last six months and in the coming months, I’ll be diving deeper into portfolio construction, beta weighting, margin-of-safety setups, hedging with high-IV strategies, and how to use options to reduce risk, not amplify it in articles, webinars and videos.

Because options are tools. Powerful tools. But like any tool, they can build or destroy depending on how you use them.

Your job as a trader isn’t to chase maximum return. It’s to find the best risk-adjusted path toward your goals. That means respecting the math, understanding the probabilities, and never outsourcing your discipline.

If that’s what you’re looking for, you’re in the right place.

🎯 Ready to Elevate Your Options Trading?
Subscribe to The Option Premium—a free weekly newsletter delivering:
✅ Actionable strategies.
✅ Step-by-step trade breakdowns.
✅ Market insights for all conditions (bullish, bearish, or neutral).

📩 Get smarter, more confident trading insights delivered to your inbox every week.

📺 Follow Me on YouTube:
🎥 Explore in-depth tutorials, trade setups, and exclusive content to sharpen your skills.