It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through a job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
@@GeorgePeeler I agree, that's the more reason I prefer my day-to-day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
@@CharlesHagen-lo7xu I appreciate the implementation of ideas and strategies that result in unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, Do you mind sharing info about this person guiding you, please?
@@CharlesFarren Finding financial advisors like Victoria Carmen Santaella who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
@@CharlesHagen-lo7xu I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Victoria Carmen Santaella up and send her a message. You've truly motivated me. God's blessings on you.
I really appreciate the dedication in each video you post. To be successful in markets, traders should understand the crossover between asset classes & liquidity flow. *Michael Hugh Terpin* focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. His skills set is top notch.
That man has changed my life for good, i attended his investment class couple of weeks last year and he's the best when it commes to guidance, i even had him trade for me and i made very good profits.
Credits goes to * Michael Hugh Terpin* , one of the finest portfolio managers in the field. he's widely recognized; you should take a look at his work.
What's the best approach to capitalize on the current market conditions? I'm deliberating on whether to diversify my $400k stocks portfolio. How should I reallocate stocks in my portfolio to mitigate against a potential crash?
The market is volatile at this time, hence I will advice you get yourself a financial advisor that can provide you with entry and exit points on the share/etf you focus on.
I was recently through an investing nightmare during the crash in march 2020. I think with the assistance of my advisor I have so far grown my initial investment of $145k to $480k
I was recently through an investing nightmare during the crash in march 2020. I think with the assistance of my advisor I have so far grown my initial investment of $145k to $480k
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
There are so many ways to get something like this done , what’s really important is finding the right person for it , I hope you become successful in trading.a good trading system would put you through many days of success.
As a newbie about to invest, you must have these three things in mind 1. Have a long term mindset. 2. Be willing to take risk. 3. Be careful on money usage, if you're not spending to earn back, then stop spending. 4. Never claim to know - Ask questions and it's best you work with a financial advisor.
Every time I watch a video like this, I'm reminded of how much I regret not buying bitcoin at the time. invested a large sum of money in early-stage crypto assets with the expectation that they would eventually flourish. How are other people in the same market making over $250k in earnings in a matter of months, baffling.
I've always advised the investors i know to exercise caution when it comes to new buys, especially right now. Its best you thread the market with the guidance of a qualified specialist or reliable counsel if you don't know where to look.
Agreed. I deal with an investment advisor for this reason. I currently have over $800k invested in a diversified portfolio that has grown exponentially and is suitable for all market seasons. Our current project for this year is a more concrete ballpark target.
This is quite educational. It's crucial for newcomers to keep in mind that the financial markets are highly irrational in the short run. You should constantly be ready for the unexpected. That is how chance operates. Because of the inherent risks in the market, I always favor long-term investments.
If you’re starting out new with options trading,remember it is always a good idea to trade on a secure basis because you’ll only be hunting shadows if you believe you can successfully self trade options without loosing much money
Certainly true,been self trading all year and I have encountered so much losses. I barely even make profits,sometimes it feels like I’m merely just learning. But I need to stop blowing money away
I wouldn’t recommend any of these strategies on a small account other then a debit spread. If your account is that small, you are probably new and going to make many mistakes. The Iron condor as described will put you in only 1 trade that can go horribly wrong. You want to spread your options across different symbols for a better chance. A leap would tie up your account so you wouldn’t be an active trader. I would recommend a Christmas tree butterfly. Very small capital requirement but also a small return. Don’t focus on return starting out, just get use to the process. You will be paying like $12 for a potential profit of like $88. The max you will lose is $12. That’s not going to break you. You live to trade another day and you can put on multiple across different symbols. What you would be doing is selling 3 calls at the current price, buying 2 calls 1 strike above, then buying 1 call 2 strikes below. This is a neutral strategy like the iron condor. You want to pick things moving sideways and right now… a lot of stocks are doing that.
Christmas tree butterfly - a very interesting strategy and one I have not heard of before your post. Thanks for describing it. I will add it to my strategies for sideways moving underlyings.
@@davec3689 yes it’s a much better trade. His trade wanted you to risk $700 to make $300. Mine, you will be risking about $200 to make close to $1000 if you did 10 of them.
I call it BS. "Christmas tree butterfly" is just a fancy name for unbalanced/broken-wing butterfly. It's NOT a neutral strategy, it's bearish strategy and you will lose, if price goes up just a few strikes.
@@IgorLisx You clearly don’t know how to set it up number one. Number 2.. IDGAF what you call it. It is a neutral strategy where you want price to consolidate. Go sit your rookie butt in the corner. Thanks 🙏
@ATLJB86--You have to consider probability of profit as well. There is no point in putting on a trade that will lose the vast majority of the time, simply because it's a cheap low risk trade. There has to be a good balance between risk, reward and probability. All three are important.
$1000? I started trading with $400. Yeah, my profits were smaller, but it's all i could afford. If you can afford one option, you have enough to trade options. Great information.
Great video! Two things I learned the hard way. The smaller the account size your start trading with the better, and the slower you ramp up your account and share sizes the better as well. It's urgently important to make sure you're emotionally prepared to manage the risk/reward of the dollar amounts you're working with. Flipping one or two option contractas is a completely differant roller coaster ride than flipping 15 or 20 contracts. Keep the adrenalin out of your trading and watch how dramaticly your win rate improves.
I have been trading for about 6 months now and just about every trade backfires and slaps me in my face. Nearly impossible for me to catch more than a few points I try to do top down analysis but it doesn't work for me . I say to myself, clearly I'm in the 90% that lose money, so I open a demo account, do my analysis, then take the opposite of what I would normally take and get the same result. I'm starting to feel hopeless, any advice for a struggling trader?
Your problem could be your stop loss is too close or you're watching your trades too much. Place it and walk away. Or you could just give up, trading isn't for everyone.
@@smanfield True, we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides yo help> ?
It's the emotional aspect of learning how to trade. I would say it's more important than any strategy. I have a similar problem. In my paper account I can make $2.5k to $3.5k easily every day without fail trading 10 spreads at a time. With real money it's been bad. The best thing you can do is start small trading 1 spread option contract at a time. Then once you feel comfortable making or losing money with that move on to 2 and so forth. Unless you're a sociopath it will take time to harden your emotions when it comes to trading. Focus on analyzing why trades lost or won by keeping a journal. Did you get out too early? Why? Did you stay in a bad trade? Why?
Number 1- don't try to get it back quick. Sure loser. Number 2- develop a plan. Small wins each trade over time build into a big account Number 3- limit the loss. If you're in a bad trade, get out. Don't let a 5% loss become a 25% Number 4- get into a good trade. Don't trade just to trade. FOMO kills accounts
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge/professional
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
There are a lot of independent advisors you might look into. But i work with Carol Pasol Lewis and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her.
thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I wrote her pertaining my financial goals.
I'm shocked to hear this from one of my favorite "teachers"! As a long time option trader, I can not understand, how a professional trader can recommend to risk more than 50% of the account in one trade. That is the 100% way to break your account! No one word about probabilities or risk management. If you have a small account and you are just learning, never risk more than 2% of your account on one trade and 10% on all open trades.
Hans, the idea was not to suggest any particular sizing of a trade. That is a very personal decision. The idea was to demonstrate that options strategies require much less in the way of capital than most other forms of trading
Your advise is for people who have time and money. If you are broke, you must risk money to make money and anyone can lose money... You have to take a calculated leap or forget being rich
This is completely overwhelming. Think I could really use more guidance to navigate the market. I've been trading since early this year but I'm still unable to make profit. However, a few investors I read about make profits of over $200,000 in months? Am I doing something wrong? I've liquidated most of my assets and I could really use some advice on what best to invest into.
My sole piece of investment advise is to read some good books on finance & investing or hire a flnanclaL or a portfolio advlsor who can help you determine the best times to buy and sell the stocks or ETFs you want to focus on. You're are safer that way.
I assumed I had a hang of the market at first, I gained $49k one year and I was super elated, until I started having losses. But then I stumbled upon a portfolio-advisr whose been guiding me since the market's been sham after the pandemic, to my utmost surprise I nettd a whooping $572K during this dip, that made it clear there's more to the market that we avg joes don't know
@marvishaN 'HEATHER LEE LARIONI' guides me. There are other good FAs online too, if you look around. But for me, Heather's honest approach gives me complete ownership and control of my positions, and her rates are incredibly affordable given my ROI.
@josephbush Thanks for this. She appears to be well-educated and seems proficient considering her résumé. I just sent her an email now. I hope she gets back to me soon.
Hi, is the following interpretation of the strategy correct? After the expire of the short call option, can I keep the long call option and buy a new short call option OTM with abt 4 week expire and so take use of the premium paid for the long call option until this option expires? Thanks for the clarification.
I tried to listen to this guy hundreds of time, but never could finished it. For $1,000 and learning, you are doing a PhD course for a elementary pupil. He uses the title as so easy but choose the hardest such as iron condor, I can't even figured out one item with one direction.
@@FudgeMichael-zy5xf Just do a quick search on Melisa Aurora Benavidez, I'm more than impressed with her achievements, she's exactly who I need for help since I'm always busy
Biggest lesson i learnt in 2022 in the trading market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
Uncertainty... It took me 5 years to stop trying to predict what about to happen in market based on charts studying, because you never know not having a mentor cost me 5 years of pain I learn to go were the market is wanting to go through the help of my advisor and keep it simple with discipline.
Definitely! All of this happened in less than a year after *Camille Alicia Garcia* told me what to do. I started with less than $100,000, and now I'm about 17,000 short of having a quarter million dollars.
Except, brokers do not allow new traders to trade multi leg options. If your account is that small, you're most likely not an experienced trader and no broker will give you a level 3 account. You probably won"t qualify for a margin account either. Great hypotheticals though. Especially if you have an established account.
Well said, the strategy makes a valid point but it cannot apply to a small account like stated in the video with 1K, I have not seen a Brokage that allows Level 3 trading wit small account or cash accounts, the video sadly did not highlight this point.
A big advantage of trading with a small account is I do not know how many traders I have chatted with who started with significant amounts of money and lost it all. Even if you can afford more, by starting small, you learn by trading with real money, which, believe me, is different to paper trading, but risks little. By building up a small account, you learn valuable lessons for when your account is larger.
I watched couple your videos. The iron condor examples always set up at the expiration date! Why? Will the strategy be less effective if you set it up 1 or 2 months before the expiration date?
To be successful in markets, traders should understand the crossover between asset classes & liquidity flow. Paula David focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. Her skills set is top notch.
To enhance our long-term investment mix, my partner and I are introducing a range of stocks and ETFs. We've committed $220k initially, with a particular emphasis on inflation-protected bonds and businesses demonstrating robust cash flows. I see potential for enduring growth in the current market, yet I'm also keen to explore strategies for generating short-term gains.
Having an advisor is the smartest approach in today's market, especially for those nearing retirement. I personally gained over $270K during this market downturn, which highlighted that there's valuable insight the average individual may not be aware of.
My advisor is Stacey Lee Decker .With the help of google you can book an appointment. She has a wealth of experience in the financial market gained over several years.
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé
Thank you very much for sharing these great strategies, however only the upside / best case scenario is demonstrated; In the interest of new traders and not as sophisticated traders, like I am, it would also be fair and totally honest to also illustrate the worst case scenario of each trade presented here! Thank you for an otherwise very well done explanation!
U.S. stock futures rose Tuesday as equities were buoyed by a sharp decline in bond yields, while earnings from some of the largest technology companies loomed in economic data. renewed buying strength in markets in September and October. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
After studying the trajectory of great assets like real estate, dividend paying stocks and gold, my conclusion is to buy and invest in what you can afford today! working with a financial advisor can certainly >
Agreed, instead of panic or following a hearsay, I simply adopted the service of an advisor early 2020 amid covid-outbreak, and so far, I've attained my most measurable financial milestone of $650k after subsequent investments.
I take guidance from a California-based wealth advisor 'Nicole Desiree Simon' you're most likely going to find her basic info on the internet, she's firmly established and well qualified.
curiously inputted her full name on my computer and searched online, found her site ranked top, very professional.. thanks for putting this out, it has rekindled the fire to my goal
I guess what I don't get is how do you cover your sold contracts that meet assignment with such small account values? Do brokerages accept a substitute for a separate options contract of the same stock?
I'm fond particularly on the O DTE selling IC. Now instead of waiting for the market to close at daily of 4pm to take full profit, what if I scalp by taking a 25% to 30% of the premium. I am aware I can only afford to do this a max of 3 DT in a week and if so is this still a sustainable long term high probability setup successful trade? If this is so will my scalping partial profit got eaten out by the trade's commission & fees? I am actually looking for a regular frequency trades with growing the account size by compounding affect.
@dllmohh6266 0 DTE has to be traded carefully. You need to have a proper balance of when you take profits and when you are stopped out of a trade. You have to back test to find that balance.
@@sethfreudberg4750 I tried before using OCO bracket orders (say say SL set at -100% of premium received) but ended up more on the losing side though the price is still well within the range, I guess stop loss is not helping much to its accuracy when it is supposed to stop out. Then I changed to only partial profit taking and it works quite accurate. The only thing that I'm still struggling is to figure out at what stage of point to manually close the trade if the trend starts to really rally or tank within the day.
You can bypass the day trade restrictions by trading futures options. 25%-30% might not be enough to cover outlier losses in the long run, so you might be better off going for 50%. As Seth mentioned, back tests will help you determine what works best for whatever instrument you're trading.
@@ragingbull94mtx I'm aware of trading /MES & /ES but as my strategy is taking partial profit with a super tiny account size and with the future's high commission and other fees these products may not suitable.
so for the iron condor, there's no need to close the positions? so we wouldn't have to worry about flagging for a PDT account with less than $5k? I'm so worried about being assigned to buy or sell 1,000 shares of something when I sell an option...
Although, that would be quite a commission hit (40 in and 40 out if closed ~$26-$52 @.65 per ) from a 10 lot SPY trade; not to mention possible assignment of 1000 shares of SPY! Maybe one could also trade the SPX with less contracts, less commissions and zero risk of assignment? Man, didn't the debit and leap trades work out perfectly though! Good example Seth! And, for people with larger longer-term portfolios; they could take a small amount of their cash and take trades like this and the wheel to increase overall returns throughout the year.
I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300,000, yielding almost no gains for quite some time.
Numerous opportunities exist to achieve substantial profits at present, but executing high-volume and nearly flawless trades requires the expertise of real-time professionals with an ISDA Agreement. This agreement allows investors to participate in sophisticated trades, exclusive to seasoned individuals, and unavailable to amateurs. Attempting to be a high-stakes trader without an ISDA is akin to trying to win the Indy 500 riding a llama.
I did a 0 DTE Iron Condor on a Webull paper trading account with 500k. When I try to sell the upper calls, I get "Naked Option Positions are currently not supported on our platform". When I try to sell the lower puts, I get "Insufficient funds, order failure". I'd only done the 2 buys, I had 478,880.50 available to trade. So this is an complete no-go for me!
His analysis comparing the returns of the HRB option position vs outright share ownership isn't quite right because shareholders get dividends while option holders don't. Still, the information was excellent and valuable.
Seth, I think I backed my way into a strategy that is winning right at 97%. I’ve back tested on ONE and the returns are monumental, the profitability zone is obviously huge but it’s somewhat complex. At what point would you say it’s too many contracts to buy for one strategy? Would you have concerns over liquidity if it’s within the major indices (RUT and SPX) ? Can we talk more about this? Thanks
i don’t understand how for the debit spread you buy a bullish call and then sell one at a higher price. How do I sell a call that I haven’t bought? Or what does that mean?
What about risk management? The iron condor example has you risking 70% of your account to win 30%. When should you drop out? My problem with spreads is figuring out when to get out. If it's losing but still above the strike price should I get out?
Hi myselfmirror: not if you buy a long option which has the effect of stopping a loss of the trade goes against you. That’s what the credit spread example one the video was pointing out. Please watch that portion again.
Very clear nice explanation. But which Brokers will allow you to daytrade with only $1000 in your account? My experience with Schwab and TD Ameritrade is they only allow four day trades and a five day period you know the pattern Day trader rule.
I know people can continue to trade option until 4:15pm EST. What if the option turns to ITM between 4pm to 4:15pm? Will they still expire worthless? Thanks.
@@panthericegirl Thank you. So I should close them by 4pm instead of just assuming they would expire worthless even if they are OTM near 4pm. I think the video did not mention some key points.
@@janewang2741 u close them up to 1 minute B4 4pm est if it's SPY up to 4:14.59 seconds here some u can trade after DIA EEM EFA IWM KRE NDX VIXY XLB XLC XLK ALL THE se 🙏🤣ctors but double check with broker so don't allow , u can trade future till 4.59 est those r my favorite
At least one brokerage (TDA) will let you close out an option position under $0.05 for no commission precisely to avoid this problem of getting assigned on the Friday expiration after the market closes. If you're anywhere near being ITM at close there is no reason not to close the position.
Do you arbitrarily implement any of these strategies? All these videos explain the different strategies but not WHEN to use them. With the iron condor, I don't want the price to move too much, so what am I looking for to use that particular strategy? Same with all the other strats. No one tells you WHEN to use them
I did the paper trading thing got pretty good. When I went to pull the trigger I found out I couldn't do any of my trades I was used to unless I did margin and had a lot of cash. Hope this is different. WOW 3 minutes in and I see it's very risky If your wrong that's a lot of margin @ what 25% daily. Not to mention most trade brokers won't let you do it as it's a higher class trade.
For the iron condor strategy, what happens if one of your short option (sell put for example) gets assigned and the long option expires worthless when the market closes? You will need $441k to purchase the assigned shares and when you sell these shares on the next trading day and the stock gaps down overnight, Aren't you taking a huge risk on the trade?
Can someone please explain to a newb HOW do you prevent catastrophic unrepayable debt? Can you screw up and end up owing money? This is my biggest worry about starting into trading, so what settings and measures should be in place to prevent this? I am using only my own money.
Make sure there is enough time premium that the person exercises takes a loss over selling the option and buying the underlying stock. If your option is deep in the money, you should roll it out to an option with a later expiration. You might only make pennies on the extra time premium, but it's better than getting assigned for pennies.
@thedoktorot--you need to size your trades to a level that suits your financial situation. The purpose of the video is to emphasize how little capital is needed for an options trade vs. the same trade expressed through buying/selling stock.
@@sethfreudberg4750 thank you. I appreciate your reply. I learned a lot from your videos. I would like to know a strategy for hedging against a worse case scenario in a trade like this. Would love to see a video on that
iBKR and some brokers require 25000 net liquidity in a margin account for short selling options. Can anyone tell me how do you do iron-condor with small account?
Only complaint about this video, while the strategies are real, is that it uses the entire account. So one loss you are no longer trading. In example 2 and 3 they also have to wait a year, and the Iron condor will only be able to do this 3 times in a 5 day period (PDT) you cannot make this trade without making day trades and your broker will likely close them out of “assignment risk” even if they are still OTM. So that strategy likely cannot be implemented
Ravi those are certainly viable and have excellent risk reward trade offs but on the other hand they are lower probability and higher risk than debit spreads
Plotting these techniques over the previous ten years is something I would like to see. Are they all about the same, or did they all perform well? I've been struggling to manage my allotment. Now that I'm fifty years old, I've begun to switch from riskier to safer investments. Bonds to individual stock ratio is lower.
Investors should be cautious when deciding which new investments to make and when limiting their exposure, especially during inflationary times. To manage this recession and perhaps obtain high yields, it is advisable to get advice from a professional or trusted advisor.
Yes, for the past eight months or more, I have been in daily communication with a financial analyst. These days, it's really simple to invest in trending stocks; the difficult part is deciding when to sell or hold onto them. My manager can assist me with entry and exit points in the sectors I work in in this situation. I can't say I regret it because, with my $160,000 starting capital, I'm 40% ahead in profits in just five months.
Seuth What if the iron condor doesn't go as planned ,? You have no time to adjust since it's a 0dte and you just lost $700 out of your initial $1000 account!. That's not responsible. I would recommend a small butterfly and not necessarily a 0dte.
A few dollars move and that Iron Condor would cost you $700 of your thousand dollar account. The MSFT trade ties up your $900+ account for a year till expiration...
Net profit would NOT be $300, that's the gross profit. The Net profit would be less commissions which could be anywhere from $20-$40 and if the trade went against you and you had to close it you would have another $20-$40 commissions. Commissions should be noted here as they can have a substantial affect on "net" profit.
@timb4695 we always point out in our disclaimers that these examples of not subject to the market factors of liquidity, slippage and commissions. We have not intent to obscure that point, it's just that everyone's commission situation is different. Some don't pay any commissions at all for instance.
If you don't have a margin account, the brokerage usually won't let you sell a put unless it's cash secured, or sell a call unless it's part of a buy/write strategy (buy the shares, sell a call on the underlying). The brokerage might let you do a debit or credit spread if both the long and the short positions are entered at the same time, and you have enough cash to cover the difference in the spread.
@@whendoigettosayfuck Yeah, I can't see having any edge on short term directional moves with accounts this small. At best you might be able to do some "Tastytrade" tactics of focusing more on iron condors 45 days out closing at 22 days out, hoping for no big swings and managing the positions if they do. That strategy is selling premium rather than buying it, where realized volatility is usually less than implied volatility. They also do earnings calendar spreads which are fairly cheap to enter, again arbitraging implied vs. realized. It's no path to huge fortunes, but can be slow and steady. My strategy is to heavily study macro, trend, and specific stock fundamentals and then placing heavily hedged complex option positions. If I could get the trades more heavily weighted to premium selling rather than buying, would probably do better.
![BOWKYLION - ส่วนต่าง (do it without me) [Official MV]](http://i.ytimg.com/vi/7x-pwcMopzE/mqdefault.jpg)
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through a job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
@@GeorgePeeler I agree, that's the more reason I prefer my day-to-day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
@@CharlesHagen-lo7xu I appreciate the implementation of ideas and strategies that result in unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, Do you mind sharing info about this person guiding you, please?
@@CharlesFarren Finding financial advisors like Victoria Carmen Santaella who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
@@CharlesHagen-lo7xu I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Victoria Carmen Santaella up and send her a message. You've truly motivated me. God's blessings on you.
I really appreciate the dedication in each video you post. To be successful in markets, traders should understand the crossover between asset classes & liquidity flow. *Michael Hugh Terpin* focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. His skills set is top notch.
That man has changed my life for good, i attended his investment class couple of weeks last year and he's the best when it commes to guidance, i even had him trade for me and i made very good profits.
Was skeptical at first until I decided to try. Its huge returns is awesome! I can’t say enough how much of an amazing trader Michael is.
HE IS ON TEL GRAM
*@michaeltpin*
Credits goes to * Michael Hugh Terpin* , one of the finest portfolio managers in the field. he's widely recognized; you should take a look at his work.
What's the best approach to capitalize on the current market conditions? I'm deliberating on whether to diversify my $400k stocks portfolio. How should I reallocate stocks in my portfolio to mitigate against a potential crash?
The market is volatile at this time, hence I will advice you get yourself a financial advisor that can provide you with entry and exit points on the share/etf you focus on.
I was recently through an investing nightmare during the crash in march 2020. I think with the assistance of my advisor I have so far grown my initial investment of $145k to $480k
I was recently through an investing nightmare during the crash in march 2020. I think with the assistance of my advisor I have so far grown my initial investment of $145k to $480k
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
Buffett & Munger are beyond amazing. wealth is attainable.
There are so many ways to get something like this done , what’s really important is finding the right person for it , I hope you become successful in trading.a good trading system would put you through many days of success.
As a newbie about to invest, you must have these three things in mind
1. Have a long term mindset.
2. Be willing to take risk.
3. Be careful on money usage, if you're not spending to earn back, then stop spending.
4. Never claim to know - Ask questions and it's best you work with a financial advisor.
He's TE LEG RAM...
@samdeymon53 💯💯....that's it = 4 advise.
I want my money to work for me with sam deymon, I’d like to learn from someone with experience.
Every time I watch a video like this, I'm reminded of how much I regret not buying bitcoin at the time. invested a large sum of money in early-stage crypto assets with the expectation that they would eventually flourish. How are other people in the same market making over $250k in earnings in a matter of months, baffling.
I've always advised the investors i know to exercise caution when it comes to new buys, especially right now. Its best you thread the market with the guidance of a qualified specialist or reliable counsel if you don't know where to look.
Agreed. I deal with an investment advisor for this reason. I currently have over $800k invested in a diversified portfolio that has grown exponentially and is suitable for all market seasons. Our current project for this year is a more concrete ballpark target.
May I know the name of the advsor who has been assisting you, please?
She's known as 'Olivia Maria Lucas'. One of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
Thanks for sharing. searched for her full name and her website popped up and it was easy to schedule a call session with her
This is quite educational. It's crucial for newcomers to keep in mind that the financial markets are highly irrational in the short run. You should constantly be ready for the unexpected. That is how chance operates. Because of the inherent risks in the market, I always favor long-term investments.
But, you can see how boring and limited they are if you're looking for large quick returns.
If you’re starting out new with options trading,remember it is always a good idea to trade on a secure basis because you’ll only be hunting shadows if you believe you can successfully self trade options without loosing much money
Certainly true,been self trading all year and I have encountered so much losses. I barely even make profits,sometimes it feels like I’m merely just learning. But I need to stop blowing money away
Trading is a lot difficult especially when you handle the analysis alone. Apparently why I work with ex pert cooper to be able to learn and earn
I can only imagine the enormous sea of derivatives that option trading will create and support.. 🤔😁🤔
Option trading hit lowest trading volume in 4 years. Feels like people aren’t so much invested in trading options anymore.
@OLISACLAIRE I’m positive you’re talking about trading Brad cooper. He My trading ex pert too.
I wouldn’t recommend any of these strategies on a small account other then a debit spread. If your account is that small, you are probably new and going to make many mistakes. The Iron condor as described will put you in only 1 trade that can go horribly wrong. You want to spread your options across different symbols for a better chance. A leap would tie up your account so you wouldn’t be an active trader. I would recommend a Christmas tree butterfly. Very small capital requirement but also a small return. Don’t focus on return starting out, just get use to the process. You will be paying like $12 for a potential profit of like $88. The max you will lose is $12. That’s not going to break you. You live to trade another day and you can put on multiple across different symbols. What you would be doing is selling 3 calls at the current price, buying 2 calls 1 strike above, then buying 1 call 2 strikes below. This is a neutral strategy like the iron condor. You want to pick things moving sideways and right now… a lot of stocks are doing that.
Christmas tree butterfly - a very interesting strategy and one I have not heard of before your post. Thanks for describing it. I will add it to my strategies for sideways moving underlyings.
@@davec3689 yes it’s a much better trade. His trade wanted you to risk $700 to make $300. Mine, you will be risking about $200 to make close to $1000 if you did 10 of them.
I call it BS.
"Christmas tree butterfly" is just a fancy name for unbalanced/broken-wing butterfly.
It's NOT a neutral strategy, it's bearish strategy and you will lose, if price goes up just a few strikes.
@@IgorLisx You clearly don’t know how to set it up number one. Number 2.. IDGAF what you call it. It is a neutral strategy where you want price to consolidate. Go sit your rookie butt in the corner. Thanks 🙏
@ATLJB86--You have to consider probability of profit as well. There is no point in putting on a trade that will lose the vast majority of the time, simply because it's a cheap low risk trade. There has to be a good balance between risk, reward and probability. All three are important.
$1000? I started trading with $400. Yeah, my profits were smaller, but it's all i could afford. If you can afford one option, you have enough to trade options.
Great information.
The point is starting with a smaller account, whatever the size.
Show us how much you grew your account
Which platform did you use?
That’s what I’m trying to figure out what platform to use Robinhood doesn’t show you all those details
Great video! Two things I learned the hard way. The smaller the account size your start trading with the better, and the slower you ramp up your account and share sizes the better as well. It's urgently important to make sure you're emotionally prepared to manage the risk/reward of the dollar amounts you're working with. Flipping one or two option contractas is a completely differant roller coaster ride than flipping 15 or 20 contracts. Keep the adrenalin out of your trading and watch how dramaticly your win rate improves.
Great info on the strategies. Would love to also have seen what happens on each trade if the market went the other way.
I have been trading for about 6 months now and just about every trade backfires and slaps me in my face. Nearly impossible for me to catch more than a few points I try to do top down analysis but it doesn't work for me . I say to myself, clearly I'm in the 90% that lose money, so I open a demo account, do my analysis, then take the opposite of what I would normally take and get the same result. I'm starting to feel hopeless, any advice for a struggling trader?
Your problem could be your stop loss is too close or you're watching your trades too much. Place it and walk away. Or you could just give up, trading isn't for everyone.
@@smanfield True, we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides yo help> ?
It's the emotional aspect of learning how to trade.
I would say it's more important than any strategy.
I have a similar problem.
In my paper account I can make $2.5k to $3.5k easily every day without fail trading 10 spreads at a time.
With real money it's been bad.
The best thing you can do is start small trading 1 spread option contract at a time. Then once you feel comfortable making or losing money with that move on to 2 and so forth.
Unless you're a sociopath it will take time to harden your emotions when it comes to trading.
Focus on analyzing why trades lost or won by keeping a journal. Did you get out too early? Why? Did you stay in a bad trade? Why?
Number 1- don't try to get it back quick. Sure loser.
Number 2- develop a plan. Small wins each trade over time build into a big account
Number 3- limit the loss. If you're in a bad trade, get out. Don't let a 5% loss become a 25%
Number 4- get into a good trade. Don't trade just to trade. FOMO kills accounts
You're not alone. I agree with ^^ start with 1 contract and go from there.
In the Iron Condor example, the $SPY 0 DTE, how did you select your strike prices on the options you sold?
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge/professional
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one.
There are a lot of independent advisors you might look into. But i work with Carol Pasol Lewis and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her.
thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I wrote her pertaining my financial goals.
I love your entire series. So informative and helpful.
I'm shocked to hear this from one of my favorite "teachers"! As a long time option trader, I can not understand, how a professional trader can recommend to risk more than 50% of the account in one trade. That is the 100% way to break your account! No one word about probabilities or risk management. If you have a small account and you are just learning, never risk more than 2% of your account on one trade and 10% on all open trades.
Hans, the idea was not to suggest any particular sizing of a trade. That is a very personal decision. The idea was to demonstrate that options strategies require much less in the way of capital than most other forms of trading
Just do this on XSP?
@@anyfoolcanknow That's not a bad idea Amy.
Iqp
Your advise is for people who have time and money. If you are broke, you must risk money to make money and anyone can lose money... You have to take a calculated leap or forget being rich
This is completely overwhelming. Think I could really use more guidance to navigate the market. I've been trading since early this year but I'm still unable to make profit. However, a few investors I read about make profits of over $200,000 in months? Am I doing something wrong? I've liquidated most of my assets and I could really use some advice on what best to invest into.
My sole piece of investment advise is to read some good books on finance & investing or hire a flnanclaL or a portfolio advlsor who can help you determine the best times to buy and sell the stocks or ETFs you want to focus on. You're are safer that way.
I assumed I had a hang of the market at first, I gained $49k one year and I was super elated, until I started having losses. But then I stumbled upon a portfolio-advisr whose been guiding me since the market's been sham after the pandemic, to my utmost surprise I nettd a whooping $572K during this dip, that made it clear there's more to the market that we avg joes don't know
@josephbush Who is this individual guiding you? I lost over $9000 just last week, could use the guidance
@marvishaN 'HEATHER LEE LARIONI' guides me. There are other good FAs online too, if you look around. But for me, Heather's honest approach gives me complete ownership and control of my positions, and her rates are incredibly affordable given my ROI.
@josephbush Thanks for this. She appears to be well-educated and seems proficient considering her résumé. I just sent her an email now. I hope she gets back to me soon.
Great breakdown! this video was worth my 17 minutes. I'm definitely encouraged to trade options now.
Great overview, love the strategies
Great options strategies 👏🙏
Thanks for making this video explaining these strategies - informative stuff.
Hi, is the following interpretation of the strategy correct? After the expire of the short call option, can I keep the long call option and buy a new short call option OTM with abt 4 week expire and so take use of the premium paid for the long call option until this option expires? Thanks for the clarification.
Hi sir
How do u deal with the real problem of liquidity in deep in the money leap options
Thank You for the Excellent Class
I tried to listen to this guy hundreds of time, but never could finished it. For $1,000 and learning, you are doing a PhD course for a elementary pupil. He uses the title as so easy but choose the hardest such as iron condor, I can't even figured out one item with one direction.
Great video! Thank you guys!
Glad you enjoyed it Peter!
so on the iron condor same day expire you wait until close?
Great video! Appreciate it!
Our pleasure @jboy
i dont understand "selling" when you dont have anything in the first place
I am so happy that I made productive decisions about my finances that changed my life forever
@@JamesKevin-pc9ui please share
@@FudgeMichael-zy5xf Just do a quick search on Melisa Aurora Benavidez, I'm more than impressed with her achievements, she's exactly who I need for help since I'm always busy
@@JamesKevin-pc9ui I just did. Awesome tip. Professional she is Melisa Aurora Benavidez
@@JamesKevin-pc9ui I'm from Australia and also Melisa Aurora Benavidez is my FA, amazing woman really. She grew a 200k portfolio for someone I know
Biggest lesson i learnt in 2022 in the trading market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
Uncertainty... It took me 5 years to stop trying to predict what about to happen in market based on charts studying, because you never know not having a mentor cost me 5 years of pain I learn to go were the market is wanting to go through the help of my advisor and keep it simple with discipline.
@@maryHenokNft I'd be glad to get the help of one, but just how can one spot a reputable one? How did you spot this adviser
Definitely! All of this happened in less than a year after *Camille Alicia Garcia* told me what to do. I started with less than $100,000, and now I'm about 17,000 short of having a quarter million dollars.
Thank you. I will search on her site online and do my due diligence. If She seem proficient. I write her an email and scheduled a phone call.
This is a GREAT video. Thanks so much for this.
Except, brokers do not allow new traders to trade multi leg options. If your account is that small, you're most likely not an experienced trader and no broker will give you a level 3 account. You probably won"t qualify for a margin account either.
Great hypotheticals though. Especially if you have an established account.
Well said, the strategy makes a valid point but it cannot apply to a small account like stated in the video with 1K, I have not seen a Brokage that allows Level 3 trading wit small account or cash accounts, the video sadly did not highlight this point.
Brokers are all over the place on how much capital they require for various options trades, but you may be right with certain brokers no doubt.
What broker do you use that allows margin trades for a balance of $1000 or less?
Great video....enjoy them all!
$1000.00....go for it !
5 or 10 k different ball game.
Trading since 1996😊
A big advantage of trading with a small account is I do not know how many traders I have chatted with who started with significant amounts of money and lost it all. Even if you can afford more, by starting small, you learn by trading with real money, which, believe me, is different to paper trading, but risks little. By building up a small account, you learn valuable lessons for when your account is larger.
Awesome comment!!!!!
Thank you for explaining it well. 💯
I watched couple your videos. The iron condor examples always set up at the expiration date! Why? Will the strategy be less effective if you set it up 1 or 2 months before the expiration date?
Priceless content!
To be successful in markets, traders should understand the crossover between asset classes & liquidity flow. Paula David focuses on Multi-asset trading, a single strategy to manage risk, profit, and the code or the actual decision-making across multi-asset classes. Her skills set is top notch.
I'm surprised you know her too, I've been making a lot of profit investing with her for a few month now.
Wow, amazing to see others who trade with Paula David, I'm currently on my 5th trade with her and my portfolio has grown tremendously.
You invest with Paula too? Wow that woman has been a blessing to me and my family.
Any information on how i can reach her, i'm new at this
I was skeptical at first until i decided to try. Its huge returns are awesome, can't say much
Great video! Very interesting to a new trader/investor like myself.
Sanity Check. In the iron condor example, why is the short put not assignable if the close is between 440 and 441?
To enhance our long-term investment mix, my partner and I are introducing a range of stocks and ETFs. We've committed $220k initially, with a particular emphasis on inflation-protected bonds and businesses demonstrating robust cash flows. I see potential for enduring growth in the current market, yet I'm also keen to explore strategies for generating short-term gains.
Having an advisor is the smartest approach in today's market, especially for those nearing retirement. I personally gained over $270K during this market downturn, which highlighted that there's valuable insight the average individual may not be aware of.
That's impressive ! I could really use the expertise of these advisors.
My advisor is Stacey Lee Decker .With the help of google you can book an appointment. She has a wealth of experience in the financial market gained over several years.
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé
About Iron Condor: What if the stock closes above the Call strike price?
Thank you very much for sharing these great strategies, however only the upside / best case scenario is demonstrated; In the interest of new traders and not as sophisticated traders, like I am, it would also be fair and totally honest to also illustrate the worst case scenario of each trade presented here! Thank you for an otherwise very well done explanation!
These are three great strategies. I have learned a lot and will make use of this!
Thank you we have many other strategy videos for you to view as well, @Lovetrains
May I know that how much would the margin be required for the first iron condor strategy?
$700 ;-)
awesome video I will defiantly be adding iron condor to my play book
Great keep watching Justin!
U.S. stock futures rose Tuesday as equities were buoyed by a sharp decline in bond yields, while earnings from some of the largest technology companies loomed in economic data. renewed buying strength in markets in September and October. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
After studying the trajectory of great assets like real estate, dividend paying stocks and gold, my conclusion is to buy and invest in what you can afford today! working with a financial advisor can certainly >
Agreed, instead of panic or following a hearsay, I simply adopted the service of an advisor early 2020 amid covid-outbreak, and so far, I've attained my most measurable financial milestone of $650k after subsequent investments.
Impressive can you share more info?
I take guidance from a California-based wealth advisor 'Nicole Desiree Simon' you're most likely going to find her basic info on the internet, she's firmly established and well qualified.
curiously inputted her full name on my computer and searched online, found her site ranked top, very professional.. thanks for putting this out, it has rekindled the fire to my goal
Great info
Thanks Christina!
Quite impressive and educational but I will love more explanation if the trade goes separate ways.
I guess what I don't get is how do you cover your sold contracts that meet assignment with such small account values? Do brokerages accept a substitute for a separate options contract of the same stock?
Great question
In the Iron Condor Scenario, are you buying or selling the Iron Condor. Thanks, Edward.
What is the account size that new traders at smb start with? Is it the same across the board? And then what's the RR on that account size?
I'm fond particularly on the O DTE selling IC. Now instead of waiting for the market to close at daily of 4pm to take full profit, what if I scalp by taking a 25% to 30% of the premium. I am aware I can only afford to do this a max of 3 DT in a week and if so is this still a sustainable long term high probability setup successful trade? If this is so will my scalping partial profit got eaten out by the trade's commission & fees? I am actually looking for a regular frequency trades with growing the account size by compounding affect.
@dllmohh6266 0 DTE has to be traded carefully. You need to have a proper balance of when you take profits and when you are stopped out of a trade. You have to back test to find that balance.
@@sethfreudberg4750 I tried before using OCO bracket orders (say say SL set at -100% of premium received) but ended up more on the losing side though the price is still well within the range, I guess stop loss is not helping much to its accuracy when it is supposed to stop out. Then I changed to only partial profit taking and it works quite accurate. The only thing that I'm still struggling is to figure out at what stage of point to manually close the trade if the trend starts to really rally or tank within the day.
You can bypass the day trade restrictions by trading futures options. 25%-30% might not be enough to cover outlier losses in the long run, so you might be better off going for 50%. As Seth mentioned, back tests will help you determine what works best for whatever instrument you're trading.
@@ragingbull94mtx I'm aware of trading /MES & /ES but as my strategy is taking partial profit with a super tiny account size and with the future's high commission and other fees these products may not suitable.
so for the iron condor, there's no need to close the positions? so we wouldn't have to worry about flagging for a PDT account with less than $5k? I'm so worried about being assigned to buy or sell 1,000 shares of something when I sell an option...
What is LEAP option?
I've heard only about LEAPS (Long-term Equity AnticiPation Securities) option.
It is defined in the video Igor. Please watch that section again. An option that when first listed has a duration of at least a year= a Leap
Please do an example when a trade hits max loss. That’s a real situation that can happen. Good for people learning to know
Losing isn't a good strategy. Let's stay on topic here. Only winners here.
very valuable info. Thanks
Although, that would be quite a commission hit (40 in and 40 out if closed ~$26-$52 @.65 per ) from a 10 lot SPY trade; not to mention possible assignment of 1000 shares of SPY! Maybe one could also trade the SPX with less contracts, less commissions and zero risk of assignment?
Man, didn't the debit and leap trades work out perfectly though! Good example Seth!
And, for people with larger longer-term portfolios; they could take a small amount of their cash and take trades like this and the wheel to increase overall returns throughout the year.
I assume you have to have a margin account and level 3 to do spreads?
I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300,000, yielding almost no gains for quite some time.
Numerous opportunities exist to achieve substantial profits at present, but executing high-volume and nearly flawless trades requires the expertise of real-time professionals with an ISDA Agreement. This agreement allows investors to participate in sophisticated trades, exclusive to seasoned individuals, and unavailable to amateurs. Attempting to be a high-stakes trader without an ISDA is akin to trying to win the Indy 500 riding a llama.
I did a 0 DTE Iron Condor on a Webull paper trading account with 500k. When I try to sell the upper calls, I get "Naked Option Positions are currently not supported on our platform". When I try to sell the lower puts, I get "Insufficient funds, order failure". I'd only done the 2 buys, I had 478,880.50 available to trade. So this is an complete no-go for me!
His analysis comparing the returns of the HRB option position vs outright share ownership isn't quite right because shareholders get dividends while option holders don't. Still, the information was excellent and valuable.
Seth, I think I backed my way into a strategy that is winning right at 97%. I’ve back tested on ONE and the returns are monumental, the profitability zone is obviously huge but it’s somewhat complex. At what point would you say it’s too many contracts to buy for one strategy? Would you have concerns over liquidity if it’s within the major indices (RUT and SPX) ? Can we talk more about this? Thanks
i don’t understand how for the debit spread you buy a bullish call and then sell one at a higher price. How do I sell a call that I haven’t bought? Or what does that mean?
Great job Seth. Looking forward to talking with you at the money show event in Orlando this October.
Thanks Mike
Money Show?
How or where do I get tickets?
Thanks
@@prepperminded5732 I get emails on the events bc i have been in the past. I would just Google it
What about risk management?
The iron condor example has you risking 70% of your account to win 30%.
When should you drop out?
My problem with spreads is figuring out when to get out. If it's losing but still above the strike price should I get out?
You should be legging out whenever your thesis for the trade isn’t valid anymore.
Dont you need quite high margin requirements at least with IBKR to be able to sell options?
Hi myselfmirror: not if you buy a long option which has the effect of stopping a loss of the trade goes against you. That’s what the credit spread example one the video was pointing out. Please watch that portion again.
You are right, I take back my comment. Thanks for the clarification and the video! @@sethfreudberg4750
Think or swim wont allow me to do condors or debit spreads??
get your account to $2500
If expire worthless at the end of the day, than I have to exercise them? Or it’s just it? The day closes an nothing happens
Very clear nice explanation. But which Brokers will allow you to daytrade with only $1000 in your account? My experience with Schwab and TD Ameritrade is they only allow four day trades and a five day period you know the pattern Day trader rule.
Switch to a cash account. Unlimited day trades with no penalties. Margin accounts are the only ones with PDT restrictions.
I know people can continue to trade option until 4:15pm EST. What if the option turns to ITM between 4pm to 4:15pm? Will they still expire worthless? Thanks.
U should close it out or u may be executed
@@panthericegirl Thank you. So I should close them by 4pm instead of just assuming they would expire worthless even if they are OTM near 4pm. I think the video did not mention some key points.
@@janewang2741 u close them up to 1 minute B4 4pm est if it's SPY up to 4:14.59 seconds here some u can trade after DIA EEM EFA IWM KRE NDX VIXY XLB XLC XLK ALL THE se 🙏🤣ctors but double check with broker so don't allow , u can trade future till 4.59 est those r my favorite
At least one brokerage (TDA) will let you close out an option position under $0.05 for no commission precisely to avoid this problem of getting assigned on the Friday expiration after the market closes. If you're anywhere near being ITM at close there is no reason not to close the position.
How do you sell the calls when you don’t even have the stocks to place as collateral though?
But in the Debit Spread, what happens if the $320 call gets assigned??
I thought most brokers do not let you attempt these strategies unless you have at least $2,000.00 and a margin account?
What broker will allow you to make these trades?
Can I do this with a Cash account or do I need to have a Margin Account ?
Which strategy I’m the video are you referring to Barbara?
Margin requires an account of at least $2000, well at least most major brokerages
Very interesting
It's been a while since I traded options. Is $2000 still required and maintained when trading option in a margin account?
Do you arbitrarily implement any of these strategies? All these videos explain the different strategies but not WHEN to use them. With the iron condor, I don't want the price to move too much, so what am I looking for to use that particular strategy? Same with all the other strats. No one tells you WHEN to use them
I did the paper trading thing got pretty good. When I went to pull the trigger I found out I couldn't do any of my trades I was used to unless I did margin and had a lot of cash. Hope this is different. WOW 3 minutes in and I see it's very risky If your wrong that's a lot of margin @ what 25% daily. Not to mention most trade brokers won't let you do it as it's a higher class trade.
In the second strategy you're assuming that you can buy back the Call but what if the buyer doesn't want to sell it back
For the iron condor strategy, what happens if one of your short option (sell put for example) gets assigned and the long option expires worthless when the market closes? You will need $441k to purchase the assigned shares and when you sell these shares on the next trading day and the stock gaps down overnight, Aren't you taking a huge risk on the trade?
yes, honestly, iron condor is not a small account strategy
Can someone please explain to a newb HOW do you prevent catastrophic unrepayable debt? Can you screw up and end up owing money? This is my biggest worry about starting into trading, so what settings and measures should be in place to prevent this? I am using only my own money.
What is small account i have 100 dollars and it states i need to have 2000 minimum in the account to open the option..
Genius! A one day trade where Calls strikes and Puts strikes are most likely out of danger of being assigned.
Most brokerages won't let you sell call options without owning the stock first.
How do you protect yourself from assignment?
Be a buyer of options and not a seller?
Make sure there is enough time premium that the person exercises takes a loss over selling the option and buying the underlying stock. If your option is deep in the money, you should roll it out to an option with a later expiration. You might only make pennies on the extra time premium, but it's better than getting assigned for pennies.
@@JScottHamilton thank you for the explanation, have a blessed day
Does this mean if your first trade is a bad trade you are out ? It sure seems like that.
@thedoktorot--you need to size your trades to a level that suits your financial situation. The purpose of the video is to emphasize how little capital is needed for an options trade vs. the same trade expressed through buying/selling stock.
@@sethfreudberg4750 thank you. I appreciate your reply. I learned a lot from your videos. I would like to know a strategy for hedging against a worse case scenario in a trade like this. Would love to see a video on that
iBKR and some brokers require 25000 net liquidity in a margin account for short selling options. Can anyone tell me how do you do iron-condor with small account?
Only complaint about this video, while the strategies are real, is that it uses the entire account. So one loss you are no longer trading. In example 2 and 3 they also have to wait a year, and the Iron condor will only be able to do this 3 times in a 5 day period (PDT) you cannot make this trade without making day trades and your broker will likely close them out of “assignment risk” even if they are still OTM. So that strategy likely cannot be implemented
What about Long Call , Long Put?
Ravi those are certainly viable and have excellent risk reward trade offs but on the other hand they are lower probability and higher risk than debit spreads
0dte's and scalping. pulled 20% from a possible 40~ % day.
@timberstiffy you won't be able to accomplish this every day, but it's certainly doable a certain percentage of the time.
Plotting these techniques over the previous ten years is something I would like to see. Are they all about the same, or did they all perform well? I've been struggling to manage my allotment. Now that I'm fifty years old, I've begun to switch from riskier to safer investments. Bonds to individual stock ratio is lower.
Investors should be cautious when deciding which new investments to make and when limiting their exposure, especially during inflationary times. To manage this recession and perhaps obtain high yields, it is advisable to get advice from a professional or trusted advisor.
Yes, for the past eight months or more, I have been in daily communication with a financial analyst. These days, it's really simple to invest in trending stocks; the difficult part is deciding when to sell or hold onto them. My manager can assist me with entry and exit points in the sectors I work in in this situation. I can't say I regret it because, with my $160,000 starting capital, I'm 40% ahead in profits in just five months.
Vivian Barbara Mui . Thats the name
Thanks for the info.I already reached out to her.
Seuth
What if the iron condor doesn't go as planned ,? You have no time to adjust since it's a 0dte and you just lost $700 out of your initial $1000 account!. That's not responsible.
I would recommend a small butterfly and not necessarily a 0dte.
A few dollars move and that Iron Condor would cost you $700 of your thousand dollar account.
The MSFT trade ties up your $900+ account for a year till expiration...
Net profit would NOT be $300, that's the gross profit. The Net profit would be less commissions which could be anywhere from $20-$40 and if the trade went against you and you had to close it you would have another $20-$40 commissions. Commissions should be noted here as they can have a substantial affect on "net" profit.
@timb4695 we always point out in our disclaimers that these examples of not subject to the market factors of liquidity, slippage and commissions. We have not intent to obscure that point, it's just that everyone's commission situation is different. Some don't pay any commissions at all for instance.
@@sethfreudberg4750 It's up to people to read the disclaimers but do they really? I'll give you all you said for sure. Thanks
@@sethfreudberg4750 Exactly Seth -Robinhood has zero commissions ;-)
Good
I don’t think there even is an option chain a year out available. It would be way more than 2600 if there was
More than a year out would require 2025 LEAPs.
Amount of spam bots pretending to recommend "financial advisors" in these vids is crazy
It won’t let me do this. I get an error if I try to sell a call or put
If you don't have a margin account, the brokerage usually won't let you sell a put unless it's cash secured, or sell a call unless it's part of a buy/write strategy (buy the shares, sell a call on the underlying). The brokerage might let you do a debit or credit spread if both the long and the short positions are entered at the same time, and you have enough cash to cover the difference in the spread.
@@JScottHamilton I am not tier 2+ and I lost 20% this year. A few smaller gains and then big losses on puts going worthless.
@@whendoigettosayfuck Yeah, I can't see having any edge on short term directional moves with accounts this small. At best you might be able to do some "Tastytrade" tactics of focusing more on iron condors 45 days out closing at 22 days out, hoping for no big swings and managing the positions if they do. That strategy is selling premium rather than buying it, where realized volatility is usually less than implied volatility. They also do earnings calendar spreads which are fairly cheap to enter, again arbitraging implied vs. realized. It's no path to huge fortunes, but can be slow and steady.
My strategy is to heavily study macro, trend, and specific stock fundamentals and then placing heavily hedged complex option positions. If I could get the trades more heavily weighted to premium selling rather than buying, would probably do better.