The biggest goal when trading in the stock market. Your biggest goal when
trading in the stock market should be not to lose money. David Jaffee with
BestStockStrategy.com you can go to BestStockStrategy.com and enter in
your email address to receive over $400 worth of free training materials and in
this video we are going to discuss why people when they trade have the wrong
goals there are a lot of fake gurus on YouTube who make it seem that trading
and investing in the stock market is a guarantee they make it seem that there
is no way you are going to lose money the reality is that any time you risk
your money in order to have a payoff and have it invest so that that money will
grow there is a decent certainty that you are actually going to lose money
there are some products like trading Forex or day trading or investing in
penny stocks where the odds are extremely stacked against you it's
almost better to go to the casino then there are other ways and other products
that are offered such as selling option premium where you can structure your
trades and win 90 to 95 percent of your trades however even when you sell
options there is no guarantee that you can actually be or that you will be a
profitable trader I received a comment which said that when you trade options
you can make money for a year or two and then you can lose everything and five
days and the reality is that if you are undisciplined and you're not patient
then that's actually true because if you run into a situation like we had in
December of 2018 where the market was down around 15 or 20 percent then people
who get complacent and greedy and they trade too many contracts they will be
forced to close out those positions for Oh large lakhs however in our situation
while we do lose money in December we made almost all of it back in January
and then in May of 2 in nineteen when the market was down
around 9% we actually made money I had one of my students enemy of screenshot
that said that he was up around 4.5% from listening to my alerts in May and
the reason is that we do not over trade because we are always scared of losing
money I think people have an incorrect perception of traders as being in front
of eight or nine computer screens and then being super active and frenetic and
jumping in and jumping out of trades that's not how successful traders make
money instead successful traders are almost like hunters where they know that
they have a limited number of bullets and they choose their targets extremely
wisely they select the highest probability with the largest payout and
then that's when they shoot their shot they don't jump in and waste ammo on
something that's not going to yield a substantial amount of meat or they don't
shoot at something if there's a high probability that they're going to miss
successful traders they always have fear that there is a possibility that they're
going to lose money and I feel that too many people on YouTube are overconfident
because they read headlines like turning six hundred dollars into eight thousand
in twelve hours from a guy like Leo with trading options live.com and they think
that this person can do it then everyone else can do it and that it's super easy
it was funny around just two or three days ago I met these guys in the sauna
of this building and they were visiting I think from California and they were
staying at one of the local hotels and they got a pass to those to the sauna
and I was listening to a podcast and they struck up a conversation with me
they told me that they were forex traders and then they
they are running a website with an education company I don't want to call
them out on it because I just there I feel like they're
pretty much no bodies and it's going to give them it'll give them a lot of
attention but I just was these guys are clearly scam artists and then they were
trying to establish a relationship with me and when something that they told me
was was kind of like it was a little bit disgusting they told me that people want
to see regular people like themselves be successful so when they give the
impression that there are normal people and that they've achieved some type of
success by trading Forex and it's very easy for them to establish trust and
they said that they got a lot of there a lot of their customers by running
Instagram ads and it's just um I think that especially with a product like
Forex where your probability of making money is probably like 1/10 of 1% I
showed you guys a study where only 500 out of 360,000 day traders this study
was done in Taiwan and also in conjunction with University of
California Berkeley so five hundred three hundred and sixty
thousand day traders are able to consistently make money and of those
five thousand they only earned five percent above simply holding an s py
index so technically I could hold the s py index and then sell covered calls
against the ETF and I would be like the best day trader I would I would beat the
returns of probably like the best day trader in the world just by implementing
that super simple strategy go long spwhy and then sell covered calls against it
but in any case I can tell you that the biggest trading mistake or the biggest
goal when trading is to not lose money and 90 to 95% of the people they do lose
money so you always have to have that fear even when you're selling option
premium there is a possibility and if you don't respect the market and you get
too greedy then there is a possibility where you're going to run into a buzzsaw
like we saw in December of 2 18 and May of 2019 where if you are not
disciplined in your opening trades then you could lose money David Jaffee with
BestStockStrategy.com please like comment share and subscribe to this
channel I mean everyone's comments so if you leave a comment that I will also
read it and I will respond to it please let me know your biggest goal when
trading let me know again what your biggest goal is when trading I will read
it I will respond and yeah leave a comment and subscribe to this channel