Risk Disclosure — Dan Steel Trading

HIGH-RISK ACTIVITY WARNING

Trading securities, options, futures, cryptocurrencies, and other financial instruments involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is appropriate for your financial situation, knowledge, experience, and risk tolerance. You can lose all of your invested capital, and in some cases more.

1. General Risk Warning

Before engaging with any Dan Steel Trading Group ("Dan Steel") educational content, community, or tool, you should understand the following:

Trading financial instruments is speculative and carries a high level of risk
The majority of retail traders lose money — studies consistently show that 70-90% of retail traders lose money in the markets
Past performance is not indicative of future results
You should only trade with capital you can afford to lose — never trade with money needed for rent, food, bills, retirement, or essential expenses
Emotional and psychological pressure of trading can lead to poor decisions and larger losses than anticipated

2. Stock/Equity Trading Risks

Trading individual stocks carries several risks:

Market risk: Stock prices can drop significantly due to broader market conditions, regardless of company fundamentals
Company-specific risk: Individual companies can experience sudden losses due to earnings misses, management changes, lawsuits, regulatory actions, or fraud
Liquidity risk: Some stocks (especially small-caps and penny stocks) may be difficult to sell at desired prices
Gap risk: Stocks can open significantly higher or lower than the prior day's close, causing unexpected losses
Margin risk: Trading on margin amplifies both gains and losses, and you can lose more than your initial investment

3. Options Trading Risks

Options trading is significantly riskier than stock trading.

The Options Clearing Corporation (OCC) requires that all options traders read and understand the "Characteristics and Risks of Standardized Options" document before trading options. Available at: theocc.com

3.1 Buying Options

Options are wasting assets — they lose value over time (theta decay), even if the underlying stock does not move
You can lose 100% of the premium paid if the option expires out-of-the-money
Options must be correct about direction, magnitude, and timing to profit
Implied volatility crush after earnings or events can cause significant losses even if your direction is correct
Wide bid-ask spreads can result in immediate losses upon purchase

3.2 Selling Options (Writing)

Selling uncovered (naked) calls has unlimited loss potential
Selling uncovered puts can result in being assigned shares at a price significantly above market value
Credit spreads and complex strategies have defined but still significant loss potential
Margin requirements for selling options can tie up substantial capital

3.3 0DTE (Zero Days to Expiration) Options

0DTE options are among the highest-risk trading instruments available to retail traders.

0DTE options can lose 100% of value within minutes or hours
Gamma risk is extreme — small price movements cause large option price changes
Theta decay is maximized — every hour of the day eats away at option value
Liquidity can dry up quickly as expiration approaches
Pin risk, assignment risk, and exercise surprises are more likely
Large institutions use 0DTE for hedging and can move markets against retail positions
0DTE trading requires constant attention and immediate decision-making

0DTE options are appropriate only for experienced traders who understand options pricing, can afford total loss of capital, and can dedicate full attention to monitoring positions. Dan Steel alerters who trade 0DTE do so as experienced professionals; their trades should not be followed by beginners or traders with limited risk capital.

4. Futures Trading Risks

Futures contracts are highly leveraged — small price movements can result in large gains or losses
You can lose more than your initial margin deposit
Overnight holding risk due to gap movements
Commodity-specific risks (supply, demand, weather, geopolitics)
Margin calls can force liquidation at unfavorable prices

5. Cryptocurrency Risks

Extreme volatility — prices can swing 20%+ in a single day
Regulatory uncertainty and potential bans
Exchange risk (hacks, insolvency, withdrawal freezes)
Wallet security risk (lost private keys = permanent loss)
Manipulation by large holders ("whales")
Liquidity issues, especially for smaller coins
Tax complexity and reporting burden

6. Psychological and Behavioral Risks

Beyond the technical and financial risks, traders face significant psychological challenges that can amplify losses:

Revenge trading: Trying to "win back" losses with larger, riskier trades
FOMO (Fear of Missing Out): Entering trades late because others are profiting
Overconfidence: Believing you've "figured out" the market after some wins
Averaging down: Adding to losing positions hoping for a reversal
Analysis paralysis: Missing opportunities due to over-thinking
Addiction: Trading can trigger gambling-like behavior and addiction
Emotional distress: Losses can cause anxiety, depression, relationship problems, and health issues

7. Risks Specific to Following Alerts and Signals

Dan Steel community members receive alerts and trade ideas from our alerters. Following these carries unique risks:

Timing differences: By the time you see and execute an alert, the opportunity may have changed
Execution differences: Your fill prices may differ significantly from the alerter's
Position sizing mismatch: What's appropriate for a professional trader may be inappropriate for you
Risk tolerance mismatch: The alerter may have different risk capital, goals, and stress thresholds
Delayed exit: Alerters may exit positions without a signal, leaving followers holding losses
Context loss: Alerts often lack the full context and reasoning behind the trade

Alerts are educational content, not instructions. You should never blindly copy trades without understanding your own risk management, position sizing, and exit strategy.

8. Tax Implications

Trading generates taxable events in most jurisdictions. You are responsible for:

Tracking all trades for tax reporting
Understanding short-term vs. long-term capital gains rates
Wash sale rules that can disallow losses
Pattern day trader (PDT) rules and restrictions
Self-employment tax implications if trading is your primary activity
Consulting a qualified tax professional

Dan Steel does not provide tax advice. Consult a licensed CPA or tax advisor familiar with trading.

9. Technology and Execution Risks

Internet or platform outages at critical moments
Brokerage system failures during high volatility
Slippage between expected and actual fill prices
Order routing issues
Software bugs in trading tools (including Dan Steel tools)
Hacking, account compromise, or identity theft

10. Recommendation: Do Not Trade With Money You Cannot Afford to Lose

Dan Steel strongly recommends that you:

Start with paper trading or small position sizes
Educate yourself thoroughly before risking real capital
Define your risk tolerance and position sizing BEFORE entering any trade
Set stop losses and stick to them
Never risk more than 1-2% of your account on any single trade
Keep a trading journal to learn from wins and losses
Take breaks and manage emotions
Seek help if you experience compulsive trading behavior — contact the National Council on Problem Gambling at ncpgambling.org or call 1-800-GAMBLER

11. Acknowledgment

By using Dan Steel Trading Group educational content, community, tools, or services, you acknowledge that you have read, understood, and accept all of the risks described in this document. You understand that trading is speculative and can result in substantial losses. You accept full responsibility for your trading decisions and outcomes.