your email address to receive over $400 worth of free trading materials. Today
we're going to talk about the emotional toll and the emotional stress that goes
along with trading and I know that on many of my videos there's a pre-roll
you want to believe them and you believe that it's extremely easy to use
three chart patterns or to use technical analysis and that this will enable you
to be a profitable trader consistently then I definitely welcome you to
purchase their program and then find out for yourself based upon your own
experience. What I can tell you from from working as an investment
for around 20 straight months, that's a pretty incredible streak I didn't have
any losing months in 2017 and I think my last
loss was in like 2016 and so you know I kind of got a little bit used to that
and perhaps I took it for granted but I can tell you that in the middle of
October of 2018 which is where which is the date that I'm currently filming this
this past week was a little bit treacherous and I lost a few hundred
thousands of trades every single year I can even tell you that I start getting a
little bit depressed I started you know not wanting to deal with things. I'm a
positive and this is a situation that I've been in before like I have complete
100% certainty that I'm gonna make all that money back. In fact actually made
money on Thursday and I made money on Fridays so this past week which was one
of the worst weeks that we've had in about eight or nine months on a net
basis I'm only down like a few percent in my account but when you're going
through it you don't know that the market is gonna turn around and you just
look at your account and you see that the hard-earned money that you've made
is going down like you're losing money and that's a that's a
really horrible feeling and I think that's one of the reasons why I rail
against these fake gurus because they tell you that it's extremely easy they
tell you and they almost promise you that you're gonna make consistent income
and that every single one your rates are gonna be profitable but when you day trade (daytrade)
when you use technical analysis not only are you not going to make money but
you're gonna buy bullshit product and then you're going to end up losing all
your money because the strategy that they teach you is not consistently
profitable but even with a strategy which is consistently profitable selling
option premium you're still going to have to weather the ups and the downs
emotional baggage that goes along with paneling losses and that's something
doing this, you're doing real estate you're doing this as a side hustle
you're trying to make extra money, you're vlogging you're driving traffic
to your website anything that you do you're going to have hurdles and if you
are not okay with overcoming those obstacles then I'm sorry like maybe
trading is not for you. I feel completely confident telling you that
percent of your trades there are going to be situations like that happened this
past Wednesday and Thursday where the market Falls like six percent and one in
That's just what it comes down to and whether you're trading verticals or your
trading naked options. It really doesn't matter because at least when you're
trading naked options you have the ability to then turn that into a
vertical to increase your buying power during the one or two times a year that
we have a major sell-off and it's extremely easy to roll and manage that
position and to reduce the size and when you're trading vertical is you're
pretty much locked in and you're going to sustain that loss because you're
going to have to roll forward that lower price put option and buy that put option
when volatility is spiking and when those put options that you're purchasing
are extremely expensive, right? And that's something that instead of
rolling over the position and using that credit to reduce the size of
that position instead when you're trading verticals you're going to be
using that money for the time value of the premium in order to buy the lower
price point option so remember there definitely is an emotional toll that
people like like David Einhorn or Bill Ackman and they're down like 10 or 15
percent on the year those guys are brilliant they have
access to every one or every single resource and they don't make money every
I made a few notes realize that success is not easy there's going to be ups and
downs I was up 20 straight months prior to February of 2018 I think that that
was a little bit of a non-recurring event like I think that that was an
depressed being upset and etc I think that the biggest takeaway is that you
have to be prepared for trading losses. Trading options is an extremely easy way for you to parlay
either you know if you have a relatively large amount of principal like $200,000
$200,000 you can easily live offer your income that you make by
selling option premium pretty easily just manage your expenses don't buy dumb
stuff and if you have around $200,000 you could easily live off the income
that you make now if you have less money which is completely cool then you're
going to have to use trading options as your "side hustle" you can look
at it as a way to supercharge your earnings so you're working real estate
you're working a nine-to-five you're working a side hustle you can then trade
options for about 10 or 15 minutes a day and
annual basis but the mean takeaway from this video is that you have to be
prepared and you have to take control over your own destiny one of the reasons
why I started trading options and why I'm so keen on teaching other people to
think for themselves is that when I started working as an investment banker
and when I graduated from Cornell and then I started
working as an investment banker and also I was promoting nightclubs
I threw so much stuff on my plate that I became very anxious and very depressed
so instead of dealing with those issues by myself I went to a psychiatrist who
start taking anti-anxiety medication and antidepressants and that was one of the
biggest mistakes that I made because my mind has still not made a full recovery
not as good my verbal communication ability ability is not as good as it was
now yes have I need like a 95 percent recovery I have but the reason why I'm
telling you this is that you have to know yourself well enough to acclimate
yourself and make decisions that are best for you. If you believe that
sustaining a relatively large loss like we sustained in February 2018 and this
past week is going to put you out of commission for two to three weeks then
maybe you shouldn't treat it now even though you're a hundred percent certain that
you're going to make that money back right if going through that moment
is going to paralyze you and you're going to get incredibly depressed and
you're gonna lose confidence then I don't recommend that you trade because
trading options is the only and selling option premium is the only way you're
gonna make money and if you can't stand to win ninety five percent your trades
but the five percent of the losers end up overwhelming the confidence that you
have when you win ninety-five percent your trades and trading is not for you
so this is David Jaffee with BestStockStrategy.com if you have any
just let me know please like comment share subscribe click the little bell
below this video I answer everyone's comment if you have any questions I'm
the education course I mean those the only two products that that on that I