Life as a Trader. What you should expect when trading options David Jaffee with BestStockStrategy.com
BestStockStrategy.com you can go to BestStockStrategy.com enter your email address
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elses paid materials that they try to sell you so in this video we're gonna
talk about the realistic expectations that you should have when you trade
options so one of the the big distracting factors that people have
which cause cost them a lot of money is they try to hit home runs and they think
that it's possible for them to earn like 100 or 200 or 300 percent a year I mean
we've all seen the videos. this year I'm absolutely killing it in the market
just learn my three easy to learn chart patterns and you too will kill it.
I mean it's complete bullsh** The reality is that when you trade, you can
potentially make like thirty to seventy percent every single year by
trading stock options but you have to have realistic expectations so this over
September and October I have right now a very bad position on in Alibaba when
Alibaba fell from around Alibaba was trading around $180 then it fell to
around 165 I sold puts on it at this moment Alibaba is turning around one
hundred and forty seven dollars and my paper losses in Alibaba are showing me
around 150 to 200 thousand dollar loss that's a lot like that's pretty
significant but I'm not really that worried about it and the reason is
because I kept my contracts very small and I know that eventually I'm going to
make money on that position now am i 100% sure I'm not but I'm like 98
percent sure that essentially all I have to do is just continue rolling out that
position and with enough time I will definitely make money on that position
but even though I made the right trade because Alibaba fell from around 2
eleven dollars all the way down to around 180 then it was 170 and I was
very patient and I made a very high probability trade the fact is that you
don't win all your trades the market just be you so some days you're going
some years you're gonna meet 70% in 2017 I made over seven I made around 70 to 73
percent this year I'm going to make less money and I'm completely okay with that
because I didn't make bad trades I've mastered my craft and sometimes you can
do everything right and things still don't work out your way I'm sure that
you know we've all had situations where let's say you like really liked a girl
or you really liked a boy and you did everything right you were nice to them
we're kind you listened to them and for some reason they just didn't like you
back I mean that happens in the stock market too where you doing everything
right you're patient you monitor your entry you you know you call like a local
bottom because let's say Alibaba fell from like 180 to around 165 it was
hovering around 165 and it sold it sold out to around 162 and then when was
trading it's relative low you decided to sell at the 150 put that's a very high
probability trade but right now when I leave I was trading it like 147 that
trade is going to show you a loss so you have to have realistic expectations that
you're not going to win in every single trade and if you get frustrated and you
get shaken out or you trade too many contracts where you cannot assume the
paper losses so your broker forces you to close out those positions for a loss
then you're not going to be able to participate in alibaba's resurgence when
it retraces some of its losses and it starts appreciating and valuing going up
in price so if you sell too many contracts and you trade too many
contracts and then Alibaba goes against you like it did with like it has been
over the past month and it follows the trajectory of those five out of a
hundred instances in five out of a hundred occurrence
because remember that trade will be profitable 95% of the time but if you
trade too many then those five out of ten instances where it's going to trade
below the strike price that you sell you are not going to have the ability to
roll that position and hold it and wait for it to retrace some of this losses so
you need to have realistic expectations that you're not going to win all your
trades that you're some years you're gonna make like 70% other years you're
gonna make 30% other years you might make 15% but the reality is that selling
option premium is the only way that you can predictively make consistent profits
in the stock market and I just want to set the expectation because on this
video you probably see scam artists who are advertising to you about how they
make a shitload of money by day trading and you shouldn't buy into that so this
is David Jaffee with BestStockStrategy.com comm you can go to my website BestStockStrategy.com
BestStockStrategy.com enter your email and receive $400 worth of free materials and
if you have any questions let me know please like comment share subscribe to
this video it helps me out and you're also helping other people out and that's
another thing that's really weird like sometimes people don't want to spread
the message because they think like they don't want to help me so they like
consume the information but then they don't want to share this video with your
friends and every time people do share the information you 'only appreciate it
like I respond to everyone's comments everyone's emails so it will be
fantastic because not only are you helping me but you're helping other
people avoid scam artists and that should make you feel good about yourself
so regardless of a state of mind that you're in at this moment you can share
this video and it should make you feel good because I am trying to help other
people avoid scam artists and also set a realistic expectations for what they
should expect by trading so once again if you have any questions I'm here for
you