The Worst Mistake Beginner Options Traders Make

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#optionstrading #optionsstrategy #tradingmistakes
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[@smbcapital]

SMB's Options Trading Workshop: bit.ly/49ZSIU7 3 Trading Setups (for stocks): bit.ly/4aS6JUU Get SMB Inside Access: bit.ly/44nh2Oz

[@supercruchynoodle]

I’m at the pre-beginner level… so, these traders that 10x their lot, are they aware of the potential losses before putting in the iron condor? I’m assuming that the investing platform shows the graph of the potential outcome and that they have gotten a tad overconfident.. correct?

[@flynnrichard4035]

I do believe a major issue common is the misconception of it being a gamble or casino game, I only got remunerative after understanding the need for pro aid.

[@alexanderrowan5723]

You said it right, a lot of traders especially the newbies and intending ones need to be told its no luck, careful analysis, dedication and consistency are factors that get one lucrative.

[@allanumar1054]

Can you pls say more on you getting profitable with pro aid ? How do you do it ?

[@joycelistings6879]

It’s true when it’s comes to the foreign exchange market its broad and complicated, professionalism and expertise importance cannot be downplayed

[@flynnrichard4035]

@@allanumar1054 It’s simple I understood working with a CFA who already had experience and skill on their side guide me.

[@flynnrichard4035]

Well they said it all, I’ve had an FA guide me, it’s what I do, it’s avoided common beginner errors.

[@jamessoriano9488]

I think this is one of the best SMB videos I've seen. It's about a trader's psychology, the emotional growth (or lack of it) that comes with experience. I've been trading naked puts for about two years. I accept assignments, which have been rare, and save but two assignments, I've been able to get out of them and into cash again within a few weeks. Modest lot size and low deltas. So far it's all been profitable, low profits, but profits, and if a seasoned trader reviewed my work, he'd say I'm too conservative, -- go for a higher delta, increase lot size. Maybe. Some day. I don't feel ready for that. It's an emotional growth thing, which is why I liked this video.

[@supanova4126]

@16:03 you’ve never met a trader that can recover from oversizing and undoing months of gains?!? Seth my brother…you haven’t met me lol!! I’ve done that a few times over the last 4 yrs and I’m still at it. Obviously learned my lesson and paid my tuition but I’m still kicking.

[@glennjsoucy9052]

Don't increase your lot size until your first loss. Fantastic advice!!! Thank you!

[@Yt-user65000]

😂

[@134hdbmj]

i was about to increase my lot sizes and this video came up. thank you so much.

[@LMF-ct4lt]

Great Video Seth. Do you typically hold until expiration or close early?

[@nd-kay]

Many thanks!😊

[@DougSmileyVirgo]

If I were in my early 20's I would have applied at SMB long ago. As I enter retirement, these videos are immensely intuitive and helpful.

[@engbmwa]

Thanks

[@coreycorey9611]

It would be great to have a follow up video discussing how to manage the loosing trades to optimize the overall results. Thanks for another great video.

[@davidfarber7542]

Good tip Seth.

[@aim-for-greatn3z947]

I live in NYC and I WISH I could be part of a group like this!!!

[@jiaoyizhidao]

Love to see these Options Traders mistake videos

[@williamy3356]

Thank you Seth for the wonderful coaching tip. (please let him know this video helped a lot.)

[@AtmanGoldenAge]

Thx Seth. But what about actively managing your 10x lot strategy as you know. By rolling the position or setting up alarms when the index comes near you short strike and exit with lesser loss. But agreed that the sizing up needs to be more gradual. Question: do you recommend using stop loss on these positions? Cheers

[@martinken2848]

Are there any strategies to roll or kill the trade when it goes against you?

[@chicagollama]

Love the videos guys…

[@bradmeltonrealtor386]

Thank you guys so much for doing these videos. It’s really lonely trying to learn trading on your own, this channel is an amazing resource!

[@ThaiGuy7]

… This might seem like a dumb question, but I’m pretty new at this: is the 50 points span between the short and long positions Standard in an iron condor? I realize that if you shorten this span, your cash flow would be less due to the higher premiums on the Long positions… Is there another reason for choosing that particular separation??

[@malihakahanum9829]

Very good suggestion sir, Mohammed.

[@joeschmoe1794]

Very good

[@cristianegro12]

How can some test that on. Paper accout

[@Relaxation-Study-Mediation]

The option prices in the presentation are often incorrect, there is no quality checking! I have noticed the same in a few SMB vids

[@blufordbirdsong1834]

This is a great video. Every trader I know makes this mistake, myself included. Size is king. I had to learn the hard way, but now effectively manage my size. I like your tips about risk as a muscle and only increasing size after taking a loss at the current size level.

[@danielsellers603]

I love this guy's explanation

[@andreimuster6866]

why not rolling the lost position?

[@LukeDune]

Been there done that got the t shirt

[@edwardwilson6658]

Why not zero DTE?

[@akshaysrivastava7016]

Problem is today’s implied volatility scenario specially in global markets. A hedge might require adjustments in iron candor which can have an impact on additional costs and impact P/L with less than .5% which ideally could have been .8% roi

[@jiaoyizhidao]

It is amazing how option trading is so different from stock trading.

[@kelvinpanko3984]

I did something very similar to this, I didn't quit trading options but I did quit trading 10 deltas. It was tough mentally!

[@wynnwozobski9688]

why did you quit 10 deltas?

[@howiescott5865]

I still consider myself a beginner. It's always good to learn from other people's advice or mistakes but it came too late for me. After a few winning trades I 10X a short put and it went against me overnight. Had it NOT gone against me, I might have 20X the next one. It cut deep but I don't regret it... it's a lesson I'll never forget.

[@BirgitAliyev-tys62]

I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Veronica Hoy.

[@Lida12007]

Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.

[@Ryanrodriguez770]

She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.

[@Gabriel-zt5ks]

You trade with Veronica Hoy too? Wow that woman has been a blessing to me and my family.

[@hansonhughes684]

I'm new at this, please how can I reach her?

[@Davidson0007]

I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much

[@cyclegrunt2662]

Rookie slow learner here; in need of better execution. Entering a position too early, closing a position too early or too late.

[@JohnSmith-ms8nj]

You need to skew this strategy to the put leg in bull markets... or find out the hard way

[@nicerides9224]

As someone who has been a gambler for decades I already knew what would happen when he increased his stakes. It's uncanny how many times a winning streak ends just as you decide to up your stake. It's like the gambling gods are tormenting you for being greedy.

[@beLIEve77]

Expiring worthful (pun intended, don't mind the grammar) was what experienced Options traders highlighted all along in the comments. Condors and Flies are not for amateurs.

[@sixter4157]

I enjoy being "Captain 1 Lot" while I am learning.

[@neuvocastezero1838]

What is this thing called a "winning streak" that you speak of?

[@beLIEve77]

The thing that usually ends the moment you incrase your wager

[@kareim27]

The more I watch SMB - the better I become as a trader and tutor. Thank you.

[@braddeicide]

With my stoplosses condors just disappear... Doesn't feel like a loss :)

[@PatelIndia-sp5vi]

Probability don't make sense in Seth's video. If you do math probability of max loss and resulting loss can easily wipe out gain from loss all the wins. I would say trade only when premium makes sense which usually happens when volatility is high.

[@billstevens5277]

Your arithmetic sounds wrong. You say the put side has a 10% chance of expiring worthless and the call side has a 10% chance of expiring worthless. They both can't expire itm. One side is guaranteed to expire worthless.

[@beLIEve77]

That's what I thought too

[@user-hj6fm2db8x]

I have NO idea what you're talking about..

[@PatelIndia-sp5vi]

​@@user-hj6fm2db8x he is saying probability of loss is 10 % as opposed to 20% mentioned in video

[@PatelIndia-sp5vi]

BTW Seth is correct

[@fubolibs4218]

Only if its the same strike price. But typically those trades have a range. If you sell calls at 100 and puts at 80 and it trades to 81 at close its fine. Both are worthless. Also if you sell for example 100 calls and 100 puts same strike price. It goes to 101. You now owe 100 bucks per lot. However if you sold those options at large premium you would still be ahead. There is a range. Go learn aboit premiums.

[@hsuwarcraft]

Lol, I thought he was going to do a naked strangle.

[@theboycm1]

Ive not seeing an profitable options trader

[@BillyBob-tr5cv]

Biggest mistake in options is rushing into a cash account. Use paper trading. Learn the buttons and how to fill orders and cancel them and also win. Also, be tough on yourself. What I mean by that is record your wins AND loses on a P&L spreadsheet. Write notes on EVERY trade. Why you won and why you loss. Do this until you have 100 data sets (100 trades) and if you have an above 70% win rate try a cash account. No, don’t use everything you have. Use 100 bucks at the start. You feel comfortable with 100 go to 200 and just keep doubling your cash with the more comfortable you get.

[@tariquesheikh1549]

Instead of Paper Trading use the Least Amount of Capital required to trade in the Money options.... And if that amount. If there's no if eventually when the capital is wiped off..then switch to paper Trading.

[@BillyBob-tr5cv]

@@tariquesheikh1549 I wouldn’t do this personally bc if I’m a new trader and I don’t know why I’m entering or exiting positions I’d blow through wayyyyy to much cash for no reason. Personally, I waited until I understood what I was looking for before dealing with money

[@stevecristea3082]

I think this video is missing the point completely. Point is win rate is meaningless when you have an awful risk to reward ratio (which all ICs have). That’s why you can’t size up randomly since one bad loss can wipe you out. Better to buy puts and calls and focus on a 1:2 RR, even with a 40% win rate you will still be profitable.

[@skunkape5918]

❤🧡💛

[@Phoenix56801]

The first mistake is trading options

[@danc.5607]

Trigger warning? Anybody in this business, I would think, needs really thick skin. But great advice.