Options trading is not as difficult as people are exaggerating it to be, but then without the technical and analytical strategies one can incur so much loss.
I will listen to this multiple times a week for the rest of my trading career. It's like the 10 commandments of trading. This wisdom and strategical advice is well grounded.
This was an awesome video. I have traded stocks, bonds and crypto for years. I was a banker for many years. I want to learn options trading before I start throwing good money after bad. These same rules apply all around. Most of my mistakes were mentioned in this video. My personal best lesson(in regards to stock trading) is diversification and to know that you do not sell the couple that are currently down. I remind myself I purchased them for a reason and hold on if I truly purchased them for long term. The others and strategy will carry the portfolio Thank you for this video. It is one of the best I have ever watched.
Thank you! I have saved this video so I can watch it again and get the notes in my trading journal. It is so good to know that what I am dealing with is a natural progression of learning. I have considered irrationally increasing my capital, dreamed of making mega bucks in a few months, even contemplated using margin to expand my capital base, and of course, have experienced the Superman syndrome. All the while there was a voice that said, research, plan, study, learn, and remain calm. Thank you for putting this video together! Just awesome mentorship.
I went live on a new strategy around May 2019, got stopped out of those first positions in the August dip. My position size was according to plan and I back tested the cr@p out the strategy. Not only did I make back the money from that drawdown, I'm making back a chunk of my tuition from the last couple of years when I started trading options seriously. Currently I have a lot of room in my buying power BUT I will stay disciplined and keep my position sizes to plan. Thanks for the video
I'm new to trading but I've gambled for over 20 years. The one thing I have learned over time is the principles you have outlined apply to gambling. It all boils down to discipline.
Trading is not gambling. You will loose alot of money if your going to gamble on the exchange. Trading is reading the market and executing a well thoughtout plan.
Must watch for options traders. Every trader must follow these simple rules to be successful. I wish I would've heard these tips when I had started 3 yrs ago.
You are so right on the constant capital. I've been constantly putting only 1k at once. The moment I put in 2k, and I lost a bit, it was much bigger than doing bad on a 1k investment.
When I start to feel comfortable that the market will be going my way, the market usually shows me that it can do whatever the hell it wants to whenever it wants to. Thank you for sharing the pearls from your experience.
I really appreciate no-nonsense deliveries like these, compared to the style of the endless amounts of gurus who are too flamboyant, and often acting like their way is THE trading way.
I have been actively trading daily for about 3 months and never touched options. I wanted to hear these tips anyway. This really hit every nail on the head even for me. All the tips were great. The tips on capital were the most helpful for me. As I experience new losing scenarios my capital has increased. So seeing those bigger red numbers was 100% making me end the trade early. On the flip side seeing a certain gain, not even a percent but face value became "enough" to exit as well. Long story short I left 60-100k potential profits on the table and gave back a small percent of my total earnings for the month because of it (This was my first "bad" month/reality check). I actually already deployed a back to basics mindset and lowered my daily capital to reinforce trusting my trades which were proving to do well. As I train my brain to work with more capital I will be increasing it at a slower more comfortable pace. Thank you so much for this video!
@Rob W If you are new to options, I STRONGLY suggest that you visit the Options Insider set of apps on Google play or the iStore. The Options Boot Camp is absolutely a must before you spend a dime in options. It gives you an outline of what is critical to know about options before you start. It's all free and incredibly valuable. It will literally save you thousands in losses. I would recommend it to literally all novice traders in the options realm.
@@jazzwinsky if you know nothing, it is a great way to start explains what the basic concepts are. Call, Put, delta,, gamma,, volatility, then progressively integrates into more complicated concepts like spreads,, straddles, strangles, butterfly and condor approaches, wheel trades, risk management, and other integrated, approaches.. I've been at this awhile and I've learned things. They are well versed, engaging and present concepts in short digestible bits. They progressively walk you through the issues and tools as well as present refreshing views on older topics. If you are up for the intellectual challenge of it, it's really enjoyable.
@@theccpisaparasite8813 thank you Sir. I will be checking it out. Most are home anyway with lots of time and nothing challenging to do. This will be good. Thank you
Lack of trading discipline is the primary reason for intraday trading l0sses it is estimated that nearly 80- 85% of intraday traders end up losing money in the forex market Experiencing loss is als0 part of the game but that don't mean you should give up.
@@Joaquim230 I would advise you t0 get a mentor who understands the market much better and help you build smart ideas t0 achieve your financial goals...
Seth this is amazing and shuffling my brain, as intended I’m sure. Thank you for posting this as well as all of your other videos. I think your presentation is top notch and I have watched you improve in both comfortability and delivery from the earliest videos (which, btw, are still excellent). Looking forward to the next, and next week’s trades!
The truth of all trading type is patience. If you really want to win you will virtual trade for a year first. How many people do that? Basically none. Virtually trading with 50 grand will open your eyes really fast. Also you can virtually day trade and get a feel for it. Or I actually suggest trading crypto that are really cheap but have high volume. Put a grand or so in... you can trade infinite times. The point is not to go all in or all out. Just make day trades buy and sell over and over and over to learn how indicators and volume, momentum and news all work with the stock/crypto etc. It's a great learning tool in real time 24 hours a day. Just don't do anything ridiculous.
I hope you don't mind, I post this in a chatroom to hopefully help new and young trades to see what they are don't wrong. It made me look into the mirror. Thanks and will see you in class.
@@continuouslylucky9667 maybe take out original investment,then play and let the profit grow,never take a loss ,since its all on money you made on the side and grew.i know its hard knowing the more money you have in the more itll be at the end of the day when markets up ,but slowly.long term things are proven to have great growth so thats what im in for ,long term
look when you make a good amount of money, withdraw it and start over because there is a good chance that your emotions will get in the way and you will lose those money that you spent a lot of time to get
@@Momojojo24 I would assume is just like gambling..Ur doing good, u get cocky and that's when u lose it all just like that! I guess is a matter of timing..when ur doing great sometimes is best to get out when ur at the top.
Great video, I can personally attest to each of these! My only issue is that the first one is partially wrong. A string of winning trades in no way affects the probability of success on your next trade. You HAVE to increase your size after winning trades, or you will NEVER increase your size. If your trade size is a per centage of your account value, (as most professionals suggest), your trade size will increase with every winning trade so your losses will usually be your largest trade amount up to that point in time. If you want to increase your account and trading size, there is no way to avoid this unpleasant reality.
Increasing your size as a percentage of account value is one thing. I think he is talking about emotionally increasing the size to a maximum amount of buying power with the amount in your account, hoping to get rich quick with the next trade.
Seth: I love your videos. You are awesome, man. Thank you for your teaching. In addition to what you mentioned, I also add that knowing your probability of profit before starting any trade is important. When you have more experience, risking more in trades with high POP supported by technical analysis and market conditions is the way to get big winners.
I have made many of these mistakes and luckily have gotten away ok thus far with an overall winning record. Thank you for the comprehensive and informative video! New subscriber, former invincible trader.
Outstanding video. I'll watch it over and over again. But then why did you do the one where the short put option trader keeps increasing his risk exposure to ridiculous levels on the SAME expiration date whereas pushing it down and OUT dramatically increases the chance of a positive outcome?
I signed up for the Webinar. I'm excited to attend as I'm very interested in stocks. Only been trading for a year. Though i haven't done any option trading yet, i definitely want to learn. I can assume the "10 things..." can apply to regular trading. I think I got lucky out of the gate and was definitely feeling invincible. Being up 80% in the first 2 months, 1 bad month, then 4 good months, 5 bad months, currently in a good month. I don't feel like I've changed my trading style. In fact i feel more educated in stocks and working to fine tune. I feel since i have more information that I'm over complicating plans. I notice i have been going back and forth with Technical Analysis and Fundamentals in my negative streak. Realizing the hard way the market does what it wants, I've thrown fundamentals out the window and leaning more towards Tech Analysis. This put me in a good month so far. Looking forward to the workshop!
Clearly speaking from experience. Thank you. Interesting that you came from the insurance business as puts are very much like a kind of insurance -- exactly.
Ive made every mistake mentioned in this video and have lost about $50k in the last 2 years. I felt like you were talking to me directly. I'm looking forward to taking the workshop today. Thank you
Seth i can't even put into words the gratitude i have for you and SMB for the content you provide for free. I started aggressively trading last march and started out on fire. Fools gold. I didn't have a fraction of the knowledge or experience that is def needed. I lost 50% of my account as of today. Since i found your videos i have watched then non stop over and over. And have such a clearer head and feel very confident i will have a successful 2020. From risk management, market conditions emmotions, everything. Once i feel i have a consistency and make money the first thing i am doing is joining the membership you provide. Ive spent a lot of money elsewhere foolishly but it led me here. Happy new year to you and your team and i cant wait to be a member.
Good luck in 2020 Greg! Thanks for watching. Check out the Options Tribe membership. It has a wealth of knowledge and hundreds of webinars you can learn from.
I started day trading a couple of months back and I can't tell you how my learnings have been exactly similar! To the dot! One of the things I would add, is to hold the tendency to make a learning everyday. Just don't! The previous days loss should not make you wary the next day! Shit happens. And you should just stick to your strategy. No need to update it everyday! And one more thing! The tip about emotion control, mindfulness. Actually the inverse is also true. Stock trading is a great way to learn emotion control.
Successful traders know how to lose well...Definitely been learning this one. I just learned trailing stop losses because I'm actually taking this thing seriously now that I have 50k invested. I'm 28 and I want it over 100k by the time I'm 30. I've been learning about options, and it's like I'm back in school, but I'm actually interested this time around.
I nearly was panicked out of my vixy position this past week. I took on a rather large long position starting on July 1 and trimmed a few times and then averaged down mid Oct.
How to get the vulture off the eagles back? The eagle flies high until the vulture can't breath anymore, the vulture falls off on his own for lack of oxygen. Practicing patience is one the resonated with me, and building risk tolerance muscle turbo important...all these rules are golden! Thank you for the great info.
The economic crisis is just a time that differentiates the wise from the other, the wise will invest right now either in stock or cryptocurrency just to hold some shares of something.
This video is decent. The class he is advertising is highly advanced and isn't introduced or friendly to getting educated very well. It's high speed and 'wow you with numbers and images that you might not understand' They're also selling you a 2,000 dollar course after it. No such thing as a free lunch.
One thing I keep struggling with is balancing letting losses get out of control versus being patient and letting it bounce back. I can think about it without emotion, but how does one know when it's time to cut losses and when it's better to wait it out? It seem more often then not, I make the wrong choice.
I've been learning how to trade for almost 2 years now and yes these notes are super true and helpful and I plan to re watch this a few times in the next few weeks just to really make sure I can recall all these at the times I need to.
Wow that is fantastic advice! I've been learning and trading options now for a few months and I've already been hurt by one of the points you listed ie. adding a lot of capital soon after a winning streak. Too late to change that now, but these lessons will definitely help me going forward. Thank you!
I am an Immature Trader. I remember the first few months of Trading! I was buying Amazon at 868 using most of my margin (which was a bad move because I wasn't using stops)!The stock went down for a bit. It finally did rise as suspected. I cashed out asap. I was an emotional wreck for the duration! haha I look back and realize why I was so nervous. No stop and used all of my money plus their money. I went in way too much! Luckily I came out ahead
I have 5 questions: 1. What is the best platform to practice option trading using the 10 Commandments? 2. How do I make my first investment? 3. How do or do I set up an options account? 4. How much money are we talking to setup up an option account? 5. Is the options income trading for beginners? if not then what is or does it matter?
It can be very confusing for the novice trader, and this is one reason why Yuril Zubong's SQB AMAC strategy can be liberating. When starting out, many traders focus on the indicator. This is completely understandable since nearly 90 percent of the forex trading books, the vast majority of forex sites on the Internet, and forex trading seminars focus on indicators and indicator-based trading. The SQB AMAC is really a smart money trading style that anyone looking for consistency in the market should use.
Nice video Seth but 3:49 that really did not apply the last 11 years as the bull market ran forever at those "indefensible high levels" LOL... I guess Warren Buffett only meant that in the context of no QE and no insanely low Fed rates but your point is well taken. ;)
He's right. I'm here because I've been paper trading for 6 months and I finally figured it out. I turned 100k into 1.3 million. I'm going to get to 2 million then go pro and save. The key is patience and emotional intelligence. I only play 2 days a week. mondays and a put on firday. practice makes perfect and never get greedy. Get in and get out. simple as that.
update i smashed my goal and made 3.8 million now im placing small bets paper still im broke saving mode has begun!! Never fn give up! just back up and get smarter!
21:40 ... what about trading on things when you are COUNTING on the large event? Especially if a commodity is being depressed by FUD about something that will be cleared up on X day?
If winning is statistical then increasing your capital is a good idea, as long as the win rate is higher then 50%. Previous wins have no effect on future trades. You should trade 20% of your available funds to maximize profits and minimize loss. Assuming the win rate is higher the 50%
I believe committing the capital offense of not taking stops, not controlling my losses and not having capital sizing patience is what caused me to pretty much lose all of my money.
Pro tip: don’t start your video with the Gambler’s Fallacy. In a probabilistic process, no amount of wins put you any closer to losing than you were when you started.
I feel like it’s better to create personas and trade as if we are the ideal individual. Then if the plan stays the same and we know the variable is the person. We should emulate us behaving differently as a way to adjust. Now the question is what mental illnesses could have the best advantage.
So Im not the right demographic, strictly retail here - when he talks about increasing capital Im thinking margin which I dont do at all anyway. Surprising how many of your points I have already adopted out of common sense :-) thanks for the insights
God Bless, I have been baptized by the holy fire of this experienced trader's wisdom. I shall repent, I feel washed of my trading sins and shall do well from now on. Amen Amen Amen
I haven't heard anyone talk about losing big if you don't sell or execute before a dividend day. that you will have to pay those dividants I heard it once, but nobody in these tutorials seem to mention it?
