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?
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.
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.
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.
… 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??
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.
@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.
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
I used to play poker and i was a winning player, grinding really good money in the lower stakes. I then climbed the stakes too quickly. While the big wins were fantastic, I eventually ran into a loss from a single hand that made me quit poker for good. I see a lot of similarities in this story and it will serve as a reminder as I get into options trading.
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.
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.
Thanks, great video. I was just about to go 10X on my stock purchase to ride that final wave on the index before market tops in 2025, but after watching this changed my mind. What if there is no final wave and market tanks right into 2009 lows.
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
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.
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.
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.
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.
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.
I swear you must have seen my trading history. Years ago, I was trading Iron Condors on the SPX and got greedy after winning for weeks/months straight. I decided to put 80% of my capital in a spread..then the market crashed and I lost it all. Thanks for the reminder.
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.
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.
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.
@@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
SMB's Options Trading Workshop: bit.ly/49ZSIU7
3 Trading Setups (for stocks): bit.ly/4aS6JUU
Get SMB Inside Access: bit.ly/44nh2Oz
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?
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.
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.
Can you pls say more on you getting profitable with pro aid ? How do you do it ?
It’s true when it’s comes to the foreign exchange market its broad and complicated, professionalism and expertise importance cannot be downplayed
@@allanumar1054
It’s simple I understood working with a CFA who already had experience and skill on their side guide me.
Well they said it all, I’ve had an FA guide me, it’s what I do, it’s avoided common beginner errors.
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.
… 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??
Don't increase your lot size until your first loss. Fantastic advice!!! Thank you!
😂
Love to see these Options Traders mistake videos
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.
@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.
i was about to increase my lot sizes and this video came up. thank you so much.
How can some test that on. Paper accout
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
The option prices in the presentation are often incorrect, there is no quality checking! I have noticed the same in a few SMB vids
I used to play poker and i was a winning player, grinding really good money in the lower stakes. I then climbed the stakes too quickly. While the big wins were fantastic, I eventually ran into a loss from a single hand that made me quit poker for good.
I see a lot of similarities in this story and it will serve as a reminder as I get into options trading.
why not rolling the lost position?
Great Video Seth.
Do you typically hold until expiration or close early?
Are there any strategies to roll or kill the trade when it goes against you?
Why not zero DTE?
I live in NYC and I WISH I could be part of a group like this!!!
Fantastic advice. I got cocky, but fortunately just experienced a small loss and hadn’t yet 10x my size. Thanks Seth.
I love this guy's explanation
Seth, this surely happened to me. It was devastating!!! I bounced back though and NEVER did it again.
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.
Thank you Seth for the wonderful coaching tip. (please let him know this video helped a lot.)
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.
Thanks, great video. I was just about to go 10X on my stock purchase to ride that final wave on the index before market tops in 2025, but after watching this changed my mind. What if there is no final wave and market tanks right into 2009 lows.
I did something very similar to this, I didn't quit trading options but I did quit trading 10 deltas. It was tough mentally!
why did you quit 10 deltas?
Many thanks!😊
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!
Very good suggestion sir, Mohammed.
Good tip Seth.
Thanks
What is this thing called a "winning streak" that you speak of?
The thing that usually ends the moment you incrase your wager
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
Been there done that got the t shirt
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.
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.
True patel
Just keep booking profits this is the key ❤
Love the videos guys…
Rookie slow learner here; in need of better execution. Entering a position too early, closing a position too early or too late.
It is amazing how option trading is so different from stock trading.
You need to skew this strategy to the put leg in bull markets... or find out the hard way
With my stoplosses condors just disappear... Doesn't feel like a loss :)
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.
The more I watch SMB - the better I become as a trader and tutor. Thank you.
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.
That's what I thought too
I have NO idea what you're talking about..
@@EricChaney-o1i he is saying probability of loss is 10 % as opposed to 20% mentioned in video
BTW Seth is correct
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.
Very good
I swear you must have seen my trading history. Years ago, I was trading Iron Condors on the SPX and got greedy after winning for weeks/months straight. I decided to put 80% of my capital in a spread..then the market crashed and I lost it all. Thanks for the reminder.
I enjoy being "Captain 1 Lot" while I am learning.
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.
Салам алейкум из Дагестана, брат смотрю тебя уже несколько месяцев
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.
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.
@@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
Lol, I thought he was going to do a naked strangle.
Ive not seeing an profitable options trader
Trigger warning? Anybody in this business, I would think, needs really thick skin. But great advice.
❤🧡💛
The first mistake is trading options
Спасибо за прекрасное видео - заработала 4225 рубля, действительно полезное видео
lol, "sensitive content"