"I Lost $551,174 From Stocks And Options Trading..." | A Cautionary Tale On Options Trading
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- เผยแพร่เมื่อ 1 มิ.ย. 2024
- More losses were recently cut and a total of SGD551,174 loss has realised in the last 10 years of investing and options trading. ► jtinvestacademy.thinkific.com...
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0:00 Introduction
1:00 My biggest win
3:11 My leaps call portfolio
5:28 Quick look into portfolio
6:22 I finally did it
7:34 Why I share this story
Learning investment with Jason Cai
learninginvestmentwithjasonca...
9:05 Staying rich
#optionstrading #options #jasoncai #investing #trading
We do not make any recommendations on whether a security is a buy/sell as every investor has different investment goals and risk profiles. The presentation of ideas from Josh Tan and TheAstuteParent are strictly for education purposes. You are advised to perform independent research yourself or seek a qualified financial adviser. We will not be liable for any losses directly or indirectly from the material. Some of the referral links in the video summary are products and services personally used by Josh Tan and they may pay an affiliate commission or referral bonus.
It is not an endorsement of the product unless explicitly stated and we will not be liable for any losses. The content in this video and any promotions mentioned is accurate as of the posting date.
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About Josh Tan:
Josh holds a degree in Accounting from NTU. In 2016, he co-founded the financial education website TheAstuteParent to provide detailed insurance plan analysis and financial planning tips.
As a ChFC Charterholder, Josh has agreed to be bounded by the ChFC®/S Code of Ethics. This includes, among others, acting in a professional manner when it comes to conducting due diligence on primary and secondary sources of investment-related data, and articulating his investment opinions based on his research and beliefs. Based on his research and analysis, he highlighted his beliefs and opinions, and illustrated the concept of time value of money, as of the time of the video.
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#1 This story board has been pieced together one article at a time to give a best possible narration of events. If you've learnt something, smash the LIKE for us k
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Your face a lot of moh peng.. did you have a troubled youth?
Thanks for sharing 👍🏻👍🏻 same here, massive paper losses. Taking a step back and not chasing my losses. This video serves as a good reminder to myself 🙏
Hope it was a useful sharing =)
Wow. So touching. Thanks josh and Jason. What a cautionary tale.
He was off a few months but the portfolio destruction is so outsized. 😢😢
Yes the destruction can come faster than expected once there is a leverage factor
Tx for sharing
Thanks for the advice
No probs. Hope you viewed till the end for the key rounding points
This is a great sharing, important message is also not to invest in something that we hv no knowledge, complex investment approach.
Thank you for the high praise
Take care, it’s a tough envt now. I tried some options in 2021, need to be more careful than actual shares
Watch to 7m45 to see full details k
Basic rule of investing, high return high risk. Low returns low risk. If someone tells you that some investment can pay you a return of 100% in a few months, then the downside is, you can lose 100% in a few months. Simple logic.
Stay strong brother remember that what doesn't kill u only makes u stronger 💪
Watch to 7m45 to see full details k
i been through the same boat as you on Palantir and now i am down 80% currently ! guess is humbling experience for us.
Do watch to 7m45 to see full details k
2022 is never an easy year for most investors. We encourage one another and look forward to a better 2023!
Great learning story....... God bless John. Wishing 2023 a better year!!!!
Thank you for the high praise, Jason shared generously first and pieced the timeline out to give a better picture
Thanks Josh for sharing on danger of Sell Option Put & Leap in a long term down market.
Hi Josh, thank you for sharing. Never dubbed fast get rich scheme. Slow and steady win the race
Yes absolutely, slow and steady
ya, as i have said too before here....u can get rich fast with stock n shares but u can get poor fast too.....its double edged sword, it cuts both way....
Thanks Josh. Learn from you.❤
Hope you’ve watched till 7m45 👌🏻
I’d advocate to avoid options
Are you count in also 10 years inflation???
Thanks josh for putting up this video.. I use to trade options some time ..but I know it’s not for everyone especially if you don’t know how to cover your lost.. I hope this video will help those who wants jump into options .. please think twice ..cheers
What is his total capital invested?
getting my cash ready to go into stock n shares anytime these 1-3 yrs....
Nice sharing
Can I know where to read Jason's article??
Search Jason Cai financial blog. Ive also attached link in summary of this video k
Everyone is a genius in a bull market
I like your honesty 👍👍
Stay at least to 7m52 k, you’d understand
Funny the youtube advertisement is Option Master Class
I am actually going to learn options trading.... is there a better way to do it?
Im on the camp of learning proper investing valuations
Anyone else can chime in?
my condolences to you,..
did you learn/get the idea to trade Options from chicken genius SG?
what do you think about him now?
thanks for replying.
Watch to 7m45 to see full details
Be respectful, even if you agree or disagree w CGS
appreciate from your sharing 👃
Hope you've seen the full story at 7m45 and hope it was useful. Invest prudently and cya around
options is not the root problem. betting on the wrong horse is the actual problem. most who bet on tsla either loading up on the shares or its call options has their portfolio decimated. Its just everyone else is paper loss while jason is realised loss. its the same whether you play with stocks or options. need to manage greed and fear.
Options are not the root problem agree. But options magnify the root problem which is greed/over-confidence.
On a side note, margin investing/trading also magnifies the problem
Thank you for saving others from your experience .
Jason's experience, watch to 7m45 and youd understand k
3 mins into the video, I knew this cannot be Josh Tan hahah. Nice sharing though, thanks.
You're sharp 👍
I may be wrong. Fast high returns are very risky as the market is just so uncertain. Profit or loss is not in our control but by forces unseen to the investor
So true. May I know the $551,174 all in USD or SGD?
His total is in SGD. But the key message is on chasing losses and overconfidence
@@joshconsultancy I too lost big in Options Trading. I did some soul searching. It was due to my lack of my technical analysis knowledge, lack of discipline in risk management and overtrading.
Good one
Thanks THC =)
I lost 35% by one single trade in Tesla and cut loss on 20 De, and have not recovered psychologically. I would very much like to trace losses eveery day, but really am not mentally well enough. Thinking to o fixed deposits going forward.
Hmmm... thats loss aversion. You may be better served staying the course
@@joshconsultancy it is mental health issue now, how i wish i have not entered into stock market before
hi, i had similar trading journey 23years ago. at that time, Options just started coming into Singapore like a trend. i started off trading stock, then options, then forex, all learning experiences, at that young age, i've lost my bucket of funds. then i realised my trading patterns irregardless of the tools (options/stocks/Fx) is my main cause of the losses. Yes you're right on chasing losses hoping for a trend change to recouperate losses is one of the key losing factors, also the main mindset if alway using a single directional strategy to invest.
Right now, cash is king! Maintain healthy amount of cash.. Just my one cents worth…
The main lesson from this person's big loss is simply the lack of RISK MANAGEMENT.
While we fantasise about outsized gains do we also imagine the nightmare of wipeouts?
But, I do admire and appreciate that person's honesty in sharing. He could have someone from making the same mistake. And helping someone is worth a lot.
Love this - "helping someone is worth a lot" =)
I like the honesty in sharing. I dislike those so-called gurus who only share-boast their profitable activities. Investment is by definition not guaranteed so profit and loss are to be expected. The main lesson I draw is to be level-headed when winning, don’t get carried away thinking you are Warren Buffet AND don’t get too down when your investment turns sour. We gain something either way - at least a lesson.
Next yr , neither soft or hard landing on USA economy . Tech firms already cut manpower ,lor. Goldman sach cutting next mth .So implication on STI at 2900, 2600,2300 ? Make your guess .Hope can hit 2200 just like covid lockdown 2 yrs ago .My wife n i already standby CPF $ & cash .
DEPLOY for 2023!! =)
Hi josh, thanks for informing general investor or trader pls do not think options is so easy. Anw if your leaps is just straight forward buy call long dated. It is not a very good way as the time decay can burn all the extrinsic value even if the stock price never go down. Try call spread, calendar or diagonal spread. Try to be direction but theta positive or slight negative. Better luck moving forward. Cheers
Jason would probably understand the terms better than me ^
@@joshconsultancy just noticed its Jason. Paisei
I lost big on Alibaba too. What advice would you give me Josh :(
Side note, not doing too badly in 2022 though :)
Eh humble brag ah chi keng lol =P
@@joshconsultancy Every dog had its day was the bigger point I was trying to make...
for 8 months l join 2 usa patron blogger on option trading
l studied all the free courses on the blog and also study all the comments
Then I realised the odds of option trading are more likely to be against me than anything else
So I didn't buy any put or call options though the blogger would give a list to invest in
Another area to watch out for is bonds especially China bonds
With so much uncertainty it is difficult to maintain mental strength in adhering to a defensive strategy
All the best everyone
l follow this channel religiausly
u have to do u homework by understanding the logic behind the fundamental
Thanks vincent and thanks for the sharing too
Don't catch a falling knife
Josh, really enjoy your frank and full details of stock option trading . I super agree option trading is a gamble and very dangerous. Thanks for this good sharing
Thank you for the high praise laykhoon
I no longer trade individual stocks for trading. I trade only ETFs paying decent dividends, because it eliminates the fear to average down and gives some safety buffer. Lastly, take out some profits reqularly.
Riding baggers are important in investing. Taking profits regularly may result in over trading
Thanks so much for sharing your honestly investment lost. Many Stocks and Gurus trying to sell their investment course to peoples. Highlighting that you can make passive income. I hope more peoples are aware Option Trading are very risky. May they learn from You. God Bless You.
Do watch to 7m45
The narration is third party 👌🏻 I’d advocate to avoid options and simplify approach
for leaps u should exit within the first 30% life cycle of the options contract. holding till expiry is too risky
Id still advocate avoid options trading. Refer to 7m45 k
Once your puts are Deep In the Money, hedge quickly by selling weekly calls to neutralise the delta as much as possible.
Would that be over-trading?
@@joshconsultancy not really. It’s protecting your capital.
How do you sell call at what delta?
@@johniamranond6508 depends on fast the market drop and what are your views. Sell ITM calls if u think market will drop further sharply.If u think market will drop but not so much, sell ATM call.
The whole story is not about stock or option. It is about the ignorance to treat investment as gambling. This kind of investing style will land him into failure, no matter what asset class that he invest into.
Life is harsh especially at times like this, that doesn't mean you should add more salt to the wound. People make mistakes, as long as it does not involve harming any loved ones, it should be deemed as forgivable. The fact he can admit what he did wrong and share it with the community already means a million that money can't buy.
His investing style needs changes, I think he would agree to some extend also
And yes ivan, forgiveness is the first step to heeling
There is no forgiveness or act to add salt issue here. It is just a highlight on investing is not gambling. No offence! Peace!
Going etf/dividend is the way to go longterm but thats boring😄 but its works.
Option trading is risky bet for frequent trader . So many traders betting on Long or short option . Beyond one 's control .I just buy quality counters when price not high. Wait to sell at higher price n collect attractive dividend at the same time .
Yes. I agree with your simpler approach Vincent.
Year end already, STI indeed has beaten NASDAQ and by a wide margin =) Unbelievable correct hoho
Know your options Greeks before trading options
Very timing. The online broker I am with is pushing hard on option trading now. To me, there are 3 big bubbles that can shake the world. China property, it is being deflated now. Japan government debt market. Last, the biggest and waiting to burst is the US stock market. US stock market does not work on fundamental. Price does not swing so wildly if it is working on fundamental or real value. It all speculation and gambling, therefore the options that resting on US stocks are just bigger speculation and gambling. My balls are not so big, so I stick to SGX blue chips.
I get your point of view. On the other hand many swear by US markets after being rewarded in the last 2years
Dear Josh. Very sorry for what happend. I have made similar experience in 2022..but you used much,more money !!!! Thats wrong.!
Watch till 7m45 to see a twist
the markets are ever random and illogical, and we are too imperfect so we should just stay away from it
HAHAHAHAHA!!!! I love this! Tesla stock plummeting! :D :D :D
Jai Hinduja. Roller coaster stock that had minted many many new millionaires while bankrupting many others especially those late followers.
Best to stick to a conservative stand
from there, i've emback on using a non-directional strategy, cashflow based mindset/strategies instead of directional trading which is similar largely to buying "Big" or "Small" in Casino (stock/Fx/Options Directional bet). Due to my earlier large lost in my fund, i can only go slow and steady to recoup my losses over my future time. Cashflow is coming in slow and steady these 2 years.
Buying leap calls only when the stock hits bottom and just buy a little. I can’t believe some body has whole portfolio of leap calls in trending down market. Buying options is highly speculative. I hope you can carry your loss into future gain for tax purpose.
The reasons quite simple: Jason bought it BEFORE the bear market is confirmed. Before that everything is a correction and a buying opportunity.
Options should be used for hedging. Anything else is risky.
I too started 2022 also with the same trading strategy as Jason (long and strong), but thanks to a number of very decent TH-cam trading channels I quickly realized I was on the wrong side of the trade and started making use of rallies to short aggressively and unload longs. I count myself fortunate... I'm starting 2023 still heavy short, and until market proves otherwise, will remain short... Contrary to what others will want to make you believe, Investing = Trading = Gambling.... Risk management is all you have to help you survive in this game long term...
Hmm, Id urge to reconsider Investing = Trading = Gambling. But yes investing and trading both require risk management and looking at risk differently
retail traders should not touch options at all.. the embedded cost/charges are much higher vs vanilla stocks.
my sister works at a hedge fund. she said her company spent tens of millions to move office 2 blocks closer to the stock exchange, so they can better intercept people's signals. they can intercept a buy/ask signal, beat your signal to the stock exchange, buy up all the shares below your price, and sell it to you for a profit.
institutional investment banks have an incredible advantage over retail investors.
they get information even while its still a rumor; not released on to the public yet. They have teams of people all around the world watching every single bit of information. They miss nothing. they have teams specializing on particular industries with the help of industry experts
Huge Note1: Directional Trading is similar to those "Big", "Small" bets in Casino, thou it has large returns, it also gets you sucked into a mindset of wanting to recoup by adding on capital to the next directional bet, be careful on directional trading. Note2: Do not leverage more than 10% of your capital coz a wrong direction will denotes a higher loss.
Great sharing Mark!
Options trading or stock trading is same as gambling. That's why invest for the long term and don't gamble. The stock market will humble you in one way or another.
Yes agree invest for long term
Leap call will die one when it drops plus decay
Agree, decay is a concern and complexity added. Stock ownership has no time pressure
Don't worry, im also in the same boat as you. Alot of my leaps are expiring jan 2023 and 2024, aapl, meta, tsm,nvda, msft and etc. Anyway, to average down, i have decided to buy the stocks instead, we don't do buy leaps anymore. Lastly, we only do sell puts (csp), cover call and vertical spread now. With csp, u set the target price u are willing to buy. If hits u get assign at your desire price. If don't hit, l keep collect premium every monthly. To be honest, option trading is a very powerful tool if you can use it correctly. Anyway my point is, you learn from your mistakes in option. As for me, option will alway plays a big part of my trading and investment portfolio.
For jason. He likely understands the terms above more than me
@@joshconsultancy sorry my mistake, i thought it was you 😄. Tell Jason, don't give up, we all learn from our mistakes, no body are born to trade or invest. But i do see alot of advertisements regarding option trading in 🇸🇬. But for all those people wants to start option trading, please don't believe the stuff they says, option is not for everyone and they make it sounds so easy. I have learned the hard way, it takes me 3 years to feel confident in trading option.
@@259Yee88 retail traders should not touch option trading, period. on every single trade you make, there's a bank/market maker taking the opposite side. the bank would hedge away the greeks (eg long half of the underlying stock to hedge option delta etc) and make pretty much risk free money (from you!). And not to mention the brokers etc in the middle. there's no free lunch, every trade you make you are paying for someone's
@@liyangsun7460 Everything in life, there are no free lunch. All im saying is, you got to know what you are doing in option or trading in general. Any trades you do, there are no 100% risk free or free money, if not everyone will be a millionaire 😃. But, as long you know your risk management, and trade within your budget. Lastly, I totally disagree or even heard people saying retailers shouldn't trade option.
Good story
Thank you for following till the end
I dare not touch options, my China stocks are down just under 20k, but I can hold and wait for the stocks to recover
agree =)
Selling short term options at ask price using some mathematical formula could work. The idea is to sell puts when stock is below it's intrinsic value and sell calls when stock is very near the intrinsic value, it's an active way to earn more returns
Hmmm, not too sure I agree on the practicality on that. Coz the saying "markets stay irrational longer than we can stay solvent"
u r not the only one...i lost S$300k in HK shares such as Alibaba, Tencent and Pingan last year 😭😭☹
Story narrated on Jason behalf. Refer to 7m45 k
I also did mistakes and lost. Crazy market
Take care. Hope the last ending segment has useful points for you
Thank you for sharing. I think that the strategy will need to improve. Buy put/call instead of Sell. Cut loss fast when not going your way
Watch to 7m45 to see full details k
When someone said he hopefully need a turn around market to breakeven, u know he is just gambling his money, just like u buyingba toto ticket to recoupe his losses over the years....keep the money in cpf or bank now....sure win, no losses.....
I actually agree
Would have been disappointed if this story was yours ...
Had it been yours it would imply a significant lost in your investment portfolio.
Wishing you better returns in 2023. The China & HK plays should be making a heading up.
Ive added a " " into title for the eagle eyed observer
Thank you for the well wishes and cya around =)
Based on my experience, I realized LEAPS is only done best during a Bull market, just like after the Covid crash in 2020. During a bear market like this when it’s too volatile, I feel it’s best to trade short term like selling options (put or call credit spreads) or even butterfly spreads with high returns w less risk when done right. A long only portfolio like LEAPS will hurt your portfolio so bad in a recession. When buying options, best is done during a strong Bull market, or if wanna trade in bear market best to trade short term breakouts to catch explosive moves when stock breaks pass support or resistance. Otherwise for most times I think selling options is good for income. For put selling during a high inflationary environment I feel best to stick with defensive consumer discretionary stocks like JNJ, KO, PEP, less volatile. But for buying options what I prefer doing is LEAPS on volatile tech companies to capture big moves either on the upside or downside, usually breakouts
It was also hard to judge when the bull had ended a year ago. This time round, the biggest challenge will be determining when the bear ends...
Hence would still suggest, minimise/forsake stock direction prediction. Invest safely =)
@@joshconsultancy I bought leaps since September 2021, I held it until around May, and I found that this is just the start of a bear market with bigger possibility to go down even lower as inflation is rising and fed is going on a hawkish stance to further increase rates, so I felt it’s gonna be very bearish in 2022 leading on to 2023 especially when the yield curve inverted, hence I just exited coz I was also thinking to wait for market to recover, but technical analysis doesn’t seem favorable. I think what I’ve learnt this year to improve trading options is to look at macro analysis, understand what’s happening in the world and how economic data affects the market and make your investment decision based on that, and also mastering technical analysis helps a lot to know when to get in and out of the trade especially for trading short term. But otherwise I think for a long term investment point of view, best to hedge by buying puts or temporarily hold cash
I beg to differ. I was a complete newbie and started selling cash secured put in 2022 after completing a course which was expensive. My mentor failed to recognise 2022 is a bear market and encouraged us to sell CSP. I suffered great losses with the market crash.
@@maureenkam9212 as i said, trading options should also include some macro analysis and some technical analysis, during a high interest and inflationary environment, its not wise to sell puts on tech stocks for example that are volatile in nature due to their weak balance sheets, sell options on stocks like JNJ, KO, that are more recession proof because of their strong balance sheets, alternatively given this bear market, should also maybe sell calls more than selling, puts, and i think its also good to take into consideration of technical analysis too, for example selling puts on support or demand zones. I learnt the hard way, i also learnt to just sell puts on stocks that i like fundamentally and thought it was such an easy cash flow machine, but i realized there were more than that, still have to consider like macro and technical mainly if trading short term options.
OMG!!! you are so rich! i dont even have that money to lose
Stay at least to 7m52 k, you’d understand
Option trading works both ways, u can gain big as well as lost big too. If one has not tamed its inner greed beast, it is easy to lost big time in option. I hope John is able to get out of the situation and rebuild his portfolio.
Jason
playing options is 1 thing. failure to analysis the market is another. i think i had post in your channel a deterioting 2022 market. 2023 will be worse than 2022. very simple. inflationary and hiking interest rate is almost guarantee a recession. Feds QT simply means less liquidity in the market( opposite of QE) which means stock market drop. even if you can guess a bear market, many cannot execute a trade. why? because the stock market which will big swing which simply means to wipe out the small retails investors confidence. stay away from stocks in 2023. it not for retail investors.
good luck!
Im advocating to start investing in 2023 amidst the bear
JL, This is such an impt video and sharing. Options as a short cut to creating passive income or cash flow is a dangerous plan. Please listen to the valuable sharing and stop gambling your dollars away. Turtle method is best. Let math compound your money and grow more patient. The rewards will come.
Yes indeed. We must remind all, especially younger audiences who are seeing their first bear market, of the slow and steady approach
Rip
Thanks for sharing. Option trading is like buying a lottery ticket. The most you lose, as buyer, is the value of the ticket (say $1) for a chance to win the prize (say $1m). But if you are on the opposite side (seller) offering the prize, you may stand to lose about $1m when there are only a few buyers and one of them has the winning ticket. Hence, buyers of options are down-side protected but not sellers. In the end, it's the fool's greed that makes the con man's day. Option trading has benefits to manage business and investment risks, but it is not for fools.
Yeah, never abuse a risk managing tool. Selling options will always trump the buying side, simply look at insurance companies.
Why never put stock Loss? Poor risk management
Maybe... Id still advocate avoid options trading. Refer to 7m45 k
Statistically is like that when we buy Option. More than 90% buy Option lose money to Sell Option. If we sell PU we might need to had strategy either to roll if we seem to be assigned. Also once assigned we need to plan should we hedge or average down is price drop another 20% or more.
Will still advocate, dont touch options. It requires a guess on near term direction
I would not learn from an instructor that does not share their portfolio P&L on a consistent basis.
Sounds like a story of lack of consistent trading strategy and also over leverage due to lack of a clear strategy to size his trades.
It’s true, overconfidence may have caused the position size to be too big
He anyhow Chiong
Seriously !! Or it's just a click bait Josh ??
Avoid jumping to conclusions. Watch till end. And avoid judging 👌🏻
@@joshconsultancy don't get me wrong, i wasn't judging. Was the caption inaccurate or misleading ? You can't have such caption 'I lost 500 grands' and expect your subscribers not to react accordingly. I wasn't able to watch the vid before it was uploaded. Anyway, i wish it wasn't true.
@@CLXH noted. Thank you for the support.
Don't judge jason who has bravely put his story out. I'm sure he has some regrets and is probably already taking corrective steps
@@CLXH I think it is not an inaccurate caption. He put in in inverted commas, so it can suggest that this is spoken from someone else and not Josh himself. I would say it's clever captioning 😁
i hope those "options" singapore gurus who say "protect your downside" in those cringy youtube ads share their pnl lol.
That's the truth that 99.99% of retail options traders face. The amount might vary, but buying long options is an almost inevitably catastrophic strategy if not implemented in a strictly quantitative manner.
Amongst my Portfolio,SG stocks ,US stocks and Singapore Properties, my best ROE is still Singapore Properties. I managed to 4x with the properties. And today my share tank but the companies that I buy has got good promising future so I am just not worried…and I invest…pls don’t gamble or borrow to buy share…this is what my grandfather taught me.
Yes agree. Whichever asset class, invest properly
Jai Hinduja. Dow and STI are in a good place while Nasdaq is down over 30 percents from the Peak.
😢😮😟🥺😭
I know people who lost on CFD, and now on options. I am not into options though there are many hooha in the internet about it. Basically I do not have the time to monitor but just buy good stocks for long term and let it be. My portfolios are down too but I am still doing DCA...less frequent now. 2023 picture still very unclear. Will relook into both stocks and cryptos next week (2023) again. Stay optimistics and invest within means too.😁
Yes stay optimistic. Plain simple unspectacular DCA is one of the best ways there is
That is the short-coming of capitalism, read financial markets. It promotes materialism aka greed. There is no incentive to toil and MADE things like the farmers or blue collar workers because traders and bankers make much more money by selling things or flavour of the month ideas like options. Conventional wisdom like "time in the markets" in a clearly unfavourable macro economic or market cycle is not entirely sound, it serves the fund managers agenda of collecting fees for funds under management.
Ya options are getting pushed by influencers, brokerages and investments courses
Cash secured puts and covered calls are the safest way to use options, leaps is a very risky bet
Would advocate to avoid options. Watch to 7m45 to see full details k
@@joshconsultancy I saw that Josh, while working, we can work with options if we are targeting to buy stock. Selling cash secured put options is not as risky as buying leaps. Worst case you buy the stock when when the put gets assigned. So one can always hold the stock long term. Similarly cover calls is just selling a call above your purchase price, so one will end up in profit if it gets assigned too, we just end up selling the stock at a targeted price. But one needs to be cautious and pledge only the amount he has in cash / number of stocks while selling options. If we get greedy we loose.
If I lose that much I will jump of the building
my comment is:
If you think buying/selling put/call whatever covered or not is option trading, sorry the fact is it is not. The way you were trading makes no much difference from stock swing trading.
I have to say you almost have no strategy, you like trading individual stock instead of ETF and you talked nothing of volatility.
It is indeed pretty sad to see a person having very limited knowledges of option strategy, knowing nothing of volatility power for option pricing and refusing to make investment grows slowly.
Tone sounds harsh, not sure if it helps Jason. Refer to 7m45 k. Be nice, no one likes losing capital
@@joshconsultancy no offence, I just bumped your video and reckon I should make comments honestly while it could sound harsh.
you know many ppl trading years of covered call writing don't know it is exactly equal to long put, and many of them believe they make leverage trading with little risk but all premium lost not only by the times goes but also volatility.
directionless
Options is a way to earn good passive income if you know what you are doing. Keep it simple, do not engage in those complicated fancy sounding strategies. Do options on stable and sound companies and diversify your portfolio. Keep a mixture of tech/defensive/speculative/ETF stocks in your portfolio. Do not get emotional and follow the rules.
Hmmm but the options he bought were on stable and sound companies...
The passive income earned from selling options has risk entailed into it. By virtue of time, it is not the same as a buy and hold dividend income portfolio
@@joshconsultancy I noted that his portfolio consists mainly of high growth tech stocks. Could have considered “boring” stocks like Kroger , Coca Cola , P&G etc. Sell Put options from companies which shares which you are happy to own should the option gets assigned. Once you own the shares (thru assignment)sell call options. Repeat this cycle (wheel technique) and generate an income stream from the premiums received. With the income generated, you can also buy put or call options or buy up the stocks you targeted. Options is a powerful tool and is also a double edged sword. Get trained on how to trade options. Learn how to use the tool safely and effectively.
Option trading has been advertise.. many trader say a good
yes indeed hence I did this story narration to warn of it
Thanks for your advice..hope you have achieve your financial freedom in one day..we all learn from failure..
Refer to 7m52 k. Hope you viewed till the end for the key rounding points
All those selling course now aggressively is to recoup their loss simply. U think they are God. I tell u they themselves also dunno how market is performing. Everyone is doing guessing game. You heng, u win a little, u sway, u lose.. With this unpredictable n volatile world now, retail buyers always losing ends short term. Better keep the money. The true winner big institution and wealthy investor...because by volume the simple fact..
Surprise Surprise no hedging?
Stay at least to 7m52 k, you’d understand
isn't this coming from jason cai in the seedly personal financial community and not you?
Refer to 7m52 k, you’d understand
@@joshconsultancy thanks for clarification. Side question, do you mind sharing how do you remain mentally calm and rational when your portfolio is down by 50% or even more, and the unrealized loss represents a substantial amount of your wealth.
@@taykaiwen8268 I'd actually answer it abit differently. If deep down there is regret or suspicion that some investments were SPECULATIVELY bought on a hype, then it is very DIFFICULT to remain calm and rational. There may be a need to face up to it and reset
On a last note, the 50% decline reflects overconcentration