Newbie traders and investors who make the transition from stocks to options often become overly confident and excited that magically they've discovered the "Holy Grail Of Investing" in a high probability option trading system. Surely no system or investing methodology is prefect and options trading has its own challenges.
Key Points from Today's Show:
- Fortitude and persistence is required to be successful at options trading.
- The day to day grind of options trading can be really tough, which is why many people give up and quit.
- Options trading is a huge game of patience and going through cycles of drawdowns and growth.
- The sequence of returns is critical to your emotional level of fortitude and to your overall portfolio — an early drawdown can put you in a bad position not only emotionally, but with your portfolio as well.
- One or two years of small positive returns are better than trying to overshoot it early on and having potential drawdowns early on.
- In most cases, you have to get outside of your comfort zone to get to the goal you want to achieve.
- Options trading is one of the best ways to generate wealth while keeping your portfolio on a consistent income path.
- When it comes to the world options trading, it's not simply going to be given to you; you have to put in the hard work and learn the system through patience and persistence.
- Consistent trading activities always end up generating more money at the end of the day.
- Staying persistent and consistent with your day-to-day trading will allow you to break the cycles and start generating more wealth.