16 min
The Real Stats on Day Trading The Option Genius Podcast: Options Trading For Income and Growth
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- Investing
I don't know if you're doing day trading, but over 74% of day traders lose money.
Interesting stat actually thought would be a lot higher, probably is. Let me give the details. So the other day, I was talking on my phone to a friend and the word migraine came out. We were talking about her child that does he have migraines. It was just one or two times that the word migraine was used.
The next day on my phone, I start seeing ads for migraines, migraine relief, migraine therapy. I'm like, What the heck is going on? You know, I haven't been to any migraine sites. I haven't searched for mi-- oh yeah, I mentioned migraines on the phone. So my phone is listening to me. And you've probably seen it. And it's just happened too many times to be a coincidence. The phones are listening to you. Mine is listening to me right now, you know, Alexa, Siri, all these guys. They're all listening. And then they're showing us ads based on the stuff we're talking about. Now, that is the future, that's how things are gonna happen in the future, right, we're gonna be thinking something, and there's gonna be some software, some program that's gonna be able to read our thoughts. And it's gonna show us a billboard with a thing that we're thinking about. So every car that goes by on the highway, will see a different sign on the Billboard, because of what they're thinking about. I don't know, it's gonna be crazy. But so I bring this up, because now I don't do day trading, I'm not interested in day trading, I lost money doing it, I don't want to do it, I found my niche.
But as a trader, you know, we talk about trading all the time. And so I see ads for all different types of companies, option buyers, forex guys, day trading companies, all this stuff. And I keep seeing, I kept seeing this ad from a company called Warrior Trading, They're day traders and the main guy, he looked like a really nice guy. Tall, skinny, long ponytail glasses, could be like, your average community college or university professor. Nice guy, you know, a little hippie looking guy. But he looked like, he was trustworthy. And he was talking about how he made millions of dollars doing day trading, and it doesn't take a lot of time. And it's super easy. And he'll teach you everything on his webinar and stuff like that. Now, I never looked at it. But by the the numbers that he was throwing up, and the amount of ads that he was running, obviously, he's got a pretty big company, and they're got a lot of students and people are going to it.
So it turns out last month, in 2022, or earlier this year, the FTC went after this company for several issues. The company has since settled. And they have agreed to pay a $3 million fine to the government, to the FTC, because of a few different things.
Number one, they were teaching people how to avoid the $25,000 rule. So there's a day trading rule that if you have less than 25,000 in your account, then you can only do two or three trades a day. And then once you get classified as a day trader and you have to have more money in your account, because it's more risky, right day trading is actually riskier than regular investing. And so if you become a day trader, then you have to have a lot more money. Well, they were teaching people how to avoid that rule. So that was strike one.
Strike two is the claims that they were making, you know, basically, he had a claim that "Oh, how I turned $500 into a million dollars, I'll teach you how to do this with very little time and you don't need a good education. You don't need this and that. And the claims, according to the government were very exaggerated, and they weren't for average people. So it's not true that you can learn to day trade if you're an idiot. It's not possible for you to day trade if you only have 15 minutes a day, it's not possible to profitably day trade by following your rules if you haven't been doing this for 50 years or some stuff like that, right?
Now our company we make claims as
I don't know if you're doing day trading, but over 74% of day traders lose money.
Interesting stat actually thought would be a lot higher, probably is. Let me give the details. So the other day, I was talking on my phone to a friend and the word migraine came out. We were talking about her child that does he have migraines. It was just one or two times that the word migraine was used.
The next day on my phone, I start seeing ads for migraines, migraine relief, migraine therapy. I'm like, What the heck is going on? You know, I haven't been to any migraine sites. I haven't searched for mi-- oh yeah, I mentioned migraines on the phone. So my phone is listening to me. And you've probably seen it. And it's just happened too many times to be a coincidence. The phones are listening to you. Mine is listening to me right now, you know, Alexa, Siri, all these guys. They're all listening. And then they're showing us ads based on the stuff we're talking about. Now, that is the future, that's how things are gonna happen in the future, right, we're gonna be thinking something, and there's gonna be some software, some program that's gonna be able to read our thoughts. And it's gonna show us a billboard with a thing that we're thinking about. So every car that goes by on the highway, will see a different sign on the Billboard, because of what they're thinking about. I don't know, it's gonna be crazy. But so I bring this up, because now I don't do day trading, I'm not interested in day trading, I lost money doing it, I don't want to do it, I found my niche.
But as a trader, you know, we talk about trading all the time. And so I see ads for all different types of companies, option buyers, forex guys, day trading companies, all this stuff. And I keep seeing, I kept seeing this ad from a company called Warrior Trading, They're day traders and the main guy, he looked like a really nice guy. Tall, skinny, long ponytail glasses, could be like, your average community college or university professor. Nice guy, you know, a little hippie looking guy. But he looked like, he was trustworthy. And he was talking about how he made millions of dollars doing day trading, and it doesn't take a lot of time. And it's super easy. And he'll teach you everything on his webinar and stuff like that. Now, I never looked at it. But by the the numbers that he was throwing up, and the amount of ads that he was running, obviously, he's got a pretty big company, and they're got a lot of students and people are going to it.
So it turns out last month, in 2022, or earlier this year, the FTC went after this company for several issues. The company has since settled. And they have agreed to pay a $3 million fine to the government, to the FTC, because of a few different things.
Number one, they were teaching people how to avoid the $25,000 rule. So there's a day trading rule that if you have less than 25,000 in your account, then you can only do two or three trades a day. And then once you get classified as a day trader and you have to have more money in your account, because it's more risky, right day trading is actually riskier than regular investing. And so if you become a day trader, then you have to have a lot more money. Well, they were teaching people how to avoid that rule. So that was strike one.
Strike two is the claims that they were making, you know, basically, he had a claim that "Oh, how I turned $500 into a million dollars, I'll teach you how to do this with very little time and you don't need a good education. You don't need this and that. And the claims, according to the government were very exaggerated, and they weren't for average people. So it's not true that you can learn to day trade if you're an idiot. It's not possible for you to day trade if you only have 15 minutes a day, it's not possible to profitably day trade by following your rules if you haven't been doing this for 50 years or some stuff like that, right?
Now our company we make claims as
16 min