Unlearning What The Industry Teaches
If this is your first time digging into SmartTrading and what we are about, I do want to welcome you and give you a special welcome.
I also want to warn you though.
Understanding the ins and outs of options(specifically my own approach to options) does not happen in a day. It does not even happen in a month.
There’s just so much you need to be aware of and understand.
And it’s not that it’s difficult or overly complex, but the more you understand about this stuff, the better you’re going to be able to implement it…
and the better you are able to implement it…
The greater the effect is in the long run.
It’s kind of like aiming, if you aim a gun or an arrow and you’re off just a little bit, you’re talking about… by the time it reaches its destination, you’re going to be off a lot.
Whereas, if you can just correct it just a little bit, you’re going to be that much closer to the target, and that’s the way this works.
You make a few small corrections or small increases in efficiencies, and in the long run, it has astronomical effects.
On top of that, there are so many different ways to do it, which is great because there are so many different personalities in trading.
I also want to warn you that my approach to trading, while fantastic, is not really the holy grail.
One of my biggest suggestions to anyone new is:
You Need To Make Sure You Stay Small.
Start Small, Stay Small.
Stay small until you experience success.
Here is some logic I see regularly:
I have a hundred thousand dollars in an account and am risking a hundred dollars on a trade.
Why would I only do one unit?
The answer is, because the growth is in the compounding.
The growth is in the compounding.
The growth is in the compounding.
No, I’m not a broken record.
It just takes repeating this several times to get it across.
The Industry Does Not Focus On This, They focus on…
- Market Direction,
- Picking the Large Trade
- Picking the Tops and Bottoms
- Picking the Next Ballistic Move
- Picking a Cryptocurrency
Compounding
There is nothing out there that will give you the risk-reward metrics that a low-risk/high-probability strategy gives you when you combine it with compounding $10, $20 or $30 per week.
If you can average $30 per week, you’re talking about growing a $5,000 account into $600,000, conservatively, after 5 years.
Once you get the hang of it you can start being a little bit more aggressive in compounding. Averaging $20 a week per unit doing this, you’re talking about the potential for $1.3 million in five years.
By that time, you will switch over to SPX, not SPY, and it is just a phenomenal opportunity.
It might take you three months to understand. It might take you six months to understand. It might take you a year to get to where you’re like, okay, now I finally get it and I’m starting to experience success, and believe me, it will be worth it.
There is just nothing else you’re going to learn in a year that’s going to give you this kind of long-term potential.
The Basic Pointers Surrounding My Main Approach To Options
- Limit Upside Risk
- Limit Downside Risk
- Minimum Potential Gain Should Be Higher Than The Maximum Risk of Either Side
- Start With A Small Trade Size
- Don’t Get Reckless in How You Put Trades Together
- Compound
Moral of the Story
Where do you want to see yourself in the next 5 years?
5 years seems so far away and yet it passes in a flash.
Think about what 5 years of devotion to an approach like this can look like for you?
And that is the Truth About Trading.
Change Your Trading, Change Your Life
Ryan Jones
SmartTrading Founder
