David Jaffee review. Now we're going to go into the secret
sauce
it's already one o'clock here and for
some reason over the past week
i've had a very congested ear which is
kind of weird to sound right
and it makes breathing a little
difficult so when i talk a lot it
actually gives me a headache
but i'm going to try to get through this
all right
so Emmett says that you'll learn that i
say that you'll learn the absolute best
trading strategy in only two to three
weeks to
acquire this valuable skill this
statement is complete in total hogwash
my thoughts are that you can learn the
basics and
the fundamentals of how to be
consistently profitable
but a lot of trading has to deal with
the nuance
and being able to quickly synthesize
information and make a quick and
accurate representation
and make a quick and accurate decision
whether you want to execute a trade or
whether you want to let that trade go
and something like that is going to take
substantially more
than two or three weeks it's gonna
potentially take
six to twelve months uh and you can
learn how to be profitable on about
ninety percent of your trades
but it's really the nuance that
separates those traders who are
incredibly
profitable relative to those who just
make about 10 or 15 percent a year
yep nuance and it uses that exact word
there is a lot of nuance that goes into
the investment strategy
so yes i do trade market leaders and no
i don't use the same approach here
definitely not and the reason is that
the market primarily trades based upon
emotion and supply and demand
and if there are more buyers than
sellers then the price is going to go up
and because the market on a long term
basis
tends to be rational but short term it
can be extremely irrational
i primarily defer to looking solely at
price
action to make a determining factor on
whether i believe something is a
worthwhile
trade with large cap stocks you don't
have to worry
about little bits information yes there
is no informational advantage
when you're trying to trade apple or
amazon there just
isn't you know pretty much everything is
already priced in so there's no reason
for you to try to read research reports
or the 10k or the 10q
or go to seekingalpha.com it's just
doing that you're just going to end up
wasting your time so
because there's no informational
advantage it's much more efficient there
are much deeper markets
and you're able to fill and execute
trades with
a very tight bid-ask spread differential
oftentimes it's only
a few cents or maybe five cents at the
maximum
you need to focus on the trading range
the underlying stock the volatility
index and
identifying underlyings that are
overextended in price on a temporary
basis
then by selling premium you're able to
profit from the time decay and the fact
that the actual move
is almost always less than the expected
move so the actual move is almost always
less than the expected move
yes this is true i am hyper focused
and i ignore everything else right here
yeah this is a huge difference between
unsophisticated investors and
sophisticated investors
whereas unsophisticated investors give
in to the fear missing out
and they try to chase the rally and then
they end up becoming bag holders i will
fade the rally
yep this is very important right here
starting from example and actually this
is funny with this tesla example
tesla actually went against me by about
70 and i still made money
on that trade it went up from 950 to
1750 i was selling calls and i still
made money
and i provided myself with a very large
safety net by selling very far out of
the money calls
and i collected a lot of money and
profit for doing that
now this trade in tesla was a very good
example because
if you traded it too large then you
would have been forced to close it out
for a loss
but because we traded with a lot of
discipline we didn't trade too large and
we also
gave ourselves ample safety net then we
were able to make a substantial amount
of money on this trade
buying options is for suckers you're not
going to buy insurance on your house and
then expect it to actually pay off and
make your money
buying options is gambling and you also
have to not only be right directionally
but you also have to be right with the
magnitude of the move
within a constrained time frame you have
to be right with the magnitude of the
move
in the direction that you guess within
and prior to the expiration of that
option
so buying options is so dangerous
because you have to guess the direction
correctly
you also have to be correct with the
magnitude of the move
and the move has to take place prior to
the expiration
of the option but when you sell options
you can still be wrong directionally
and make money yeah in march 2020 i
really didn't get hurt that much
i was definitely showing paper losses
because
my vertical credit spreads were maxed
out at the maximum loss now remember
that's a defined risk trade
but thankfully i was very fortunate
where i was not trading naked options
there
and the reason i wasn't was because the
vix was so low at the time
i believe it was around february 19th
the vix was trading at about 11 and a
half
or 12 i believe somewhere around there
and i was trading spreads because i
thought that there would be
a large volatility pop and i felt that
the market was overextended to the
upside
so in describing my strategy now this is
extremely simplifying it
and everything is about nuance but the
best way to describe my trading is out
of an insurance company i basically wait
for overextended moves in the largest
companies
then sell out of the money strikes and
while i win almost all my trades i
almost
i always make sure that if i'm wrong
then i can easily manage the position
so here's a it looks like there's a typo
there
anyway moving on yeah i'm just
collecting premium
and yeah it's all about keeping your
your size small
nuance is so important you can replicate
my strategy but you're not going to make
the same decisions
my students pay me for the decisions
that i make and i make good decisions
and a lot of times people think that as
long as they're active then they're
going to make money but that's false
if you're active but you make bad
decisions you're going to lose money
oftentimes it's much harder to sit on
your hands and do nothing
and to resist the urge to not over trade
than it is to actually pull the trigger
on a trade that you know
is not the best opportunity available
but you just get
really anxious because you haven't made
a trade in one or two days
and for those people they really have to
do some soul searching because
being active and making bad decisions
is going to cost you money and it's also
going to saddle you
with a lot of stress and a lot of
unnecessary stress
so i think that nuance is incredibly
important in being
a successful and profitable trader yeah
this is what everyone always asks me
if you make so much money then why do
you sell a course well
same reason like why is it 1 14 am
and i'm recording this video for you
because
i'm a workaholic i mean i definitely
should be sleeping right now and i would
love to be sleeping right now but the
fact is it's 1 14 in the morning
and i am making this video for you
because i
am a workaholic all right
so how did i answer this i said
the money's good yeah i mean it's
definitely good and
when you have very violent sell-offs
like what happened in march 2020
there's no guarantee that the market's
going to rebound and even though march
2020 is probably the most violent
sell-off that
we will ever experience in our life
where the market fell 36 percent in 33
days
still i was showing a paper loss because
my defined risk trades were at max loss
and having income coming from students
helped mitigate some of those losses
additionally i do see a lot of people
who sell garbage and
and for me i was just shocked that
people are willing to pay for garbage so
i figured that why don't i actually sell
a good product
my time is valuable and my students make
money i am
very very careful with my time in fact
if someone emails me
and i don't think they're good fit i
turn down students all the time
just because if someone's high
maintenance i just don't want to deal
with them
i'm not trying to sound like i'm better
than anyone no it's just that
your time is your most valuable asset
and a lot of people are going to take
from you
but they're not going to give you
anything and if they want something from
you then
you should be able to set your own rates
and you should be able to charge
what you want because even the richest
person in the world
is unable to buy back a single second
time with all
of the money in the world so time is by
far your most valuable asset
and because my students make money it
would be really foolish for me
to not charge for it yeah it's true and
i guess the final one is i actually
really do enjoy
interacting with my students i really do
so wrapping things up i feel like i got
to know Emmett
through the course of him asking me a
ton of questions
and asking me for documentation and
things like that and i feel like
i have a tremendous amount of respect
for Emmett for what he does
and i definitely encourage you that if
you're interested in being a student
that you reward him for investing the
time
in helping people avoid fake gurus and
helping
people make solid decisions in who they
choose
to learn from so i would highly
encourage you to
use his affiliate link if you have
interest in enrolling as a student
yeah as i said there's a lot of nuance
involved in options trading yet for
those who are committed and they will
learn a valuable training strategy that
is consistently profitable
so i highly recommend that you enroll
with Emmett
and use his affiliate link because he
deserves it
all right
