Why ~99% of Traders LOSE Money (And Why YOU Do Too)

Why ~99% of Traders LOSE Money (And Why YOU Do Too)


Why most traders lose money. Trading is the best side hustle but it
will not make you rich. David Jaffee with BestStockStrategy.com and in this
video I’m going to discuss why many people have unrealistic expectations
when it comes to trading when you trade. In my opinion the only way
that you’re not going to lose money is if you sell option premium. So let’s just
completely disregard and eliminate day trading, buying options, penny stocks
forex trading when you do all of that you are going to lose money. The only
other way that you could make money in the stock market is by buying and
holding legitimate companies and then selling. And if you wanted to juice your returns you can then sell cover calls against that that will probably
earn you I’d say about 10% a year if you’re trying to make around thirty five
to forty five percent a year trading is your absolute best side hustle and
specifically selling option premium why the reason is that right now it’s
basically free to trade so I have no idea why many people will go into real
estate where they have to pay closing fees insurance home home maintenance
like maintenance fees you know home fees like all that stuff regarding like the
organizations that manage the building you are going to have to pay commissions
for for real estate agents etc taxes property taxes etc it’s just trading is
basically free there is no better side hustle but here’s the caveat even if you
make 40 percent a year a lot of people are just simply unhappy with that they
think that they can turn $2,000 into two million dollars which is not possible so
when you make even 40 percent a year what’s forty percent on two thousand
dollars it is eight hundred dollars and for many people eight hundred dollars is
not going to change their life what is forty percent on ten thousand it is four
thousand dollars for many people earning an incremental four thousand dollars a
year is not going to be life-changing and what a lot of people do is they are
unwilling to build the confidence build the discipline that is necessary
to reward themselves in the future so the best thing that you can do if you
have anywhere from like two to twenty thousand dollars is to learn how to sell
option premium the problem is that when you have two to twenty thousand dollars
that is directly counter to the human desire and the greed temptation that
many human beings have where they want to turn two thousand dollars into a
hundred thousand dollars because when you have a hundred thousand dollars you
are at a different level of wealth than you are when you have anywhere from two
to ten thousand dollars so instead what these people do is they’ll take their
two to ten thousand dollars and load a trade or low trade penny stocks or
they’ll buy options and then they’ll end up losing everything what these people
should do is they should learn how to sell option premium and they should try
to earn anywhere from thirty to fifty percent a year and yes it might not make
them a ton of money in an actual basis but instead they are going to perfect a
legitimate skill that over the long term five years from now ten years from now
can help them turn that two thousand dollars in combination with the money
that they’re earning after a regular job from let’s say two thousand into five
hundred thousand or two thousand into a million
so again the best way that young people can learn a legitimate skill and build
wealth is to not spend money on things that they don’t need live a minimalistic
lifestyle learn how to sell option premium and save your money by working
at a a full-time job what you can then do is as you’re practicing and honing
your craft and building up legitimate skills you can take some of the money
that you’re earning at your full-time job and pour it into your brokerage
account so maybe just the principle amount from your brokerage account will
grow from like 2,000 to 3,000 to 5,000 to 10,000 to 15,000 and then on top of
that on an annual basis you’re going to earn around thirty five to forty percent
a year by selling option premium that is then going to further juice your returns
and maybe after five years you will have been able to have turn let’s say you
contributed around fifteen thousand dollars
overall principle you will have been able to have turn let’s say that 15,000
into about 75,000 after about five years and that would be a nice return of about
sixty thousand dollars which would be about a three hundred percent net
increase over your original investment which is much better than you trying to
day trade or or buy options or trade penny stocks so again it is very
important for you to learn how to sell option premium how to turn yourself in
to the casino how to turn yourself in to the insurance company and the reason why
I say trading is the best way to earn extra money but it is also not for
everyone is that it is not going to make you rich because you are quote-unquote
only going to earn around thirty five to forty percent a year but for many people
that is not enough money and that is the reason why they will not have any money
that is the reason why they are going to lose all their money because they are
going to give in to the human temptation and the human desire to engage in risky
behavior and to take unnecessary chances and that is going to cause them to lose
money so David Jaffee with BestStockStrategy.com visit BestStockStrategy.com so that you
can receive over four hundred dollars of valuable options trading education if
you have any questions let me know please leave a comment below and let me
know your thoughts on what you believe the best side hustle is and I appreciate
your attention