38 min
The 4 Pillars of Successful Trading The Option Genius Podcast: Options Trading For Income and Growth
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- Investing
Why don't most people who try trading succeed at it? You probably heard the numbers 90, 95, somewhere around there percent of people fail at trading, then they give up and they leave and they lose their money, right? So we have at least for me, what am I methods are one of my missions in life is to help people get over that problem.
And we have to make it as simple as possible. But I have noticed that there are four pillars that everybody needs. Four things that you need to be successful. All right, so let's go ahead and get into it. The thing is that it doesn't have to be just about trading, you need these four pillars and just about anything in life. And so if you have ever succeeded at something, right?
You have probably already attained these four pillars, or you've used them somehow, some way, and you already know what they are. But when it comes to trading, for some reason, we think it's totally different. Things is, if it gets unique. I don't especially, I don't know what it is, but we kind of forget what the pillars are.
So let's go through them and talk about how they directly relate to trading. Now, there are four pillars, right, these are the four things that you need. Two of them are completely mandatory, meaning without these you will not succeed, there's no way ever, the other two are not mandatory, but they help a lot. And they speed up the process. And they make it a lot faster, they make it a lot easier, they make it a lot more fun, and they make it a lot more profitable. Okay, so what normally takes people years, without, if you only had the first two, it could take you years and years to be successful at trading, when you have all four, it could be in a lot less time.
Now look, you cannot succeed without the pillars. But even with the pillars, it does not guarantee you will succeed because it's still trading. And there are still other things that are more related to you, versus the things that everybody can have, if that makes sense. Okay, there are some limitations that every single person has, there might be something that's stopping you personally from achieving success. But these are the four things that I can say that everybody needs to have in order to succeed. Now look, when you start trading, you start on the ground, right, you're on the ground floor, you don't know anything, you don't know what you don't know, that's one thing.
And you want to get on top, you want to get on top of the markets, you want to get on top of your finances, you want to get just achieve, right? And so you need support. You need the four pillars 1234 pillars, again, with two of them, you can get by, right? You might have a gap in the middle, you have one on one side or on the other side, and the gap in the middle will be sagging, kind of, but it can still survive with only one you're gonna fall off. And there's no way you're gonna stand up with three you might get there with four you definitely most likely will.
So what are they? Number one, this strategy? This is pillar number one, this is the strategy. This is where most traders start. This is what they want to know first, like what do I do what to do? This is knowing what to do. And so if you are a passive trader, that means you know, covered call one strategy naked put credit spread, strangles, straddles, iron condors, diagonals, ratios, back spread, there are so many of them, right? There are so many strategies out there. Most traders, they grab the first strategy they see, and they try to make it work. But that is the wrong way to do it. The problem is not all strategies work for all people. Now you can say you know what, I'm going to learn every single strategy. And I'm going to master all of them. And I'm gonna get really good at all of them. Could be, but they're not just these few strategies. There are lots of other strategies out there as day trading. There's real estate, there's crypto, there's swing trade, there are all kinds of different strategies, an
Why don't most people who try trading succeed at it? You probably heard the numbers 90, 95, somewhere around there percent of people fail at trading, then they give up and they leave and they lose their money, right? So we have at least for me, what am I methods are one of my missions in life is to help people get over that problem.
And we have to make it as simple as possible. But I have noticed that there are four pillars that everybody needs. Four things that you need to be successful. All right, so let's go ahead and get into it. The thing is that it doesn't have to be just about trading, you need these four pillars and just about anything in life. And so if you have ever succeeded at something, right?
You have probably already attained these four pillars, or you've used them somehow, some way, and you already know what they are. But when it comes to trading, for some reason, we think it's totally different. Things is, if it gets unique. I don't especially, I don't know what it is, but we kind of forget what the pillars are.
So let's go through them and talk about how they directly relate to trading. Now, there are four pillars, right, these are the four things that you need. Two of them are completely mandatory, meaning without these you will not succeed, there's no way ever, the other two are not mandatory, but they help a lot. And they speed up the process. And they make it a lot faster, they make it a lot easier, they make it a lot more fun, and they make it a lot more profitable. Okay, so what normally takes people years, without, if you only had the first two, it could take you years and years to be successful at trading, when you have all four, it could be in a lot less time.
Now look, you cannot succeed without the pillars. But even with the pillars, it does not guarantee you will succeed because it's still trading. And there are still other things that are more related to you, versus the things that everybody can have, if that makes sense. Okay, there are some limitations that every single person has, there might be something that's stopping you personally from achieving success. But these are the four things that I can say that everybody needs to have in order to succeed. Now look, when you start trading, you start on the ground, right, you're on the ground floor, you don't know anything, you don't know what you don't know, that's one thing.
And you want to get on top, you want to get on top of the markets, you want to get on top of your finances, you want to get just achieve, right? And so you need support. You need the four pillars 1234 pillars, again, with two of them, you can get by, right? You might have a gap in the middle, you have one on one side or on the other side, and the gap in the middle will be sagging, kind of, but it can still survive with only one you're gonna fall off. And there's no way you're gonna stand up with three you might get there with four you definitely most likely will.
So what are they? Number one, this strategy? This is pillar number one, this is the strategy. This is where most traders start. This is what they want to know first, like what do I do what to do? This is knowing what to do. And so if you are a passive trader, that means you know, covered call one strategy naked put credit spread, strangles, straddles, iron condors, diagonals, ratios, back spread, there are so many of them, right? There are so many strategies out there. Most traders, they grab the first strategy they see, and they try to make it work. But that is the wrong way to do it. The problem is not all strategies work for all people. Now you can say you know what, I'm going to learn every single strategy. And I'm going to master all of them. And I'm gonna get really good at all of them. Could be, but they're not just these few strategies. There are lots of other strategies out there as day trading. There's real estate, there's crypto, there's swing trade, there are all kinds of different strategies, an
38 min