Is High Probability Option Trading the Holy Grail of Investing?
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.