Why most traders lose money. Trading is the best side hustle but it will not make you rich. David Jaffee with
BestStockStrategy.com and in this video I'm going to discuss why many
people have unrealistic expectations when it comes to trading when you trade.
In my opinion the only way that you're not going to lose money is
if you sell option premium. So let's just completely disregard and eliminate day
trading, buying options, penny stocks forex trading when you do all of that
you are going to lose money. The only other way that you could make money in
the stock market is by buying and holding legitimate companies and then
selling. And if you wanted to juice your returns you can then sell cover
calls against that that will probably earn you I'd say about 10% a year if
you're trying to make around thirty five to forty five percent a year trading is
your absolute best side hustle and specifically selling option premium why
the reason is that right now it's basically free to trade so I have no
idea why many people will go into real estate where they have to pay closing
fees insurance home home maintenance like maintenance fees you know home fees
like all that stuff regarding like the organizations that manage the building
you are going to have to pay commissions for for real estate agents etc taxes
property taxes etc it's just trading is basically free there is no better side
hustle but here's the caveat even if you make 40 percent a year a lot of people
are just simply unhappy with that they think that they can turn $2,000 into two
million dollars which is not possible so when you make even 40 percent a year
what's forty percent on two thousand dollars it is eight hundred dollars and
for many people eight hundred dollars is not going to change their life what is
forty percent on ten thousand it is four thousand dollars for many people earning
an incremental four thousand dollars a year is not going to be life-changing
and what a lot of people do is they are unwilling to build the confidence
build the discipline that is necessary to reward themselves in the future so
the best thing that you can do if you have anywhere from like two to twenty
thousand dollars is to learn how to sell option premium the problem is that when
you have two to twenty thousand dollars that is directly counter to the human
desire and the greed temptation that many human beings have where they want
to turn two thousand dollars into a hundred thousand dollars because when
you have a hundred thousand dollars you are at a different level of wealth than
you are when you have anywhere from two to ten thousand dollars so instead what
these people do is they'll take their two to ten thousand dollars and load a
trade or low trade penny stocks or they'll buy options and then they'll end
up losing everything what these people should do is they should learn how to
sell option premium and they should try to earn anywhere from thirty to fifty
percent a year and yes it might not make them a ton of money in an actual basis
but instead they are going to perfect a legitimate skill that over the long term
five years from now ten years from now can help them turn that two thousand
dollars in combination with the money that they're earning after a regular job
from let's say two thousand into five hundred thousand or two thousand into a
million so again the best way that young people
can learn a legitimate skill and build wealth is to not spend money on things
that they don't need live a minimalistic lifestyle learn how to sell option
premium and save your money by working at a a full-time job what you can then
do is as you're practicing and honing your craft and building up legitimate
skills you can take some of the money that you're earning at your full-time
job and pour it into your brokerage account so maybe just the principle
amount from your brokerage account will grow from like 2,000 to 3,000 to 5,000
to 10,000 to 15,000 and then on top of that on an annual basis you're going to
earn around thirty five to forty percent a year by selling option premium that is
then going to further juice your returns and maybe after five years you will have
been able to have turn let's say you contributed around fifteen thousand
dollars overall principle you will have been
able to have turn let's say that 15,000 into about 75,000 after about five years
and that would be a nice return of about sixty thousand dollars which would be
about a three hundred percent net increase over your original investment
which is much better than you trying to day trade or or buy options or trade
penny stocks so again it is very important for you to learn how to sell
option premium how to turn yourself in to the casino how to turn yourself in to
the insurance company and the reason why I say trading is the best way to earn
extra money but it is also not for everyone is that it is not going to make
you rich because you are quote-unquote only going to earn around thirty five to
forty percent a year but for many people that is not enough money and that is the
reason why they will not have any money that is the reason why they are going to
lose all their money because they are going to give in to the human temptation
and the human desire to engage in risky behavior and to take unnecessary chances
and that is going to cause them to lose money so David Jaffee with BestStockStrategy.com
visit BestStockStrategy.com so that you can receive over four hundred dollars of
valuable options trading education if you have any questions let me know
please leave a comment below and let me know your thoughts on what you believe
the best side hustle is and I appreciate your attention