NEVER Buy Options. Options Trading: SHOCKING $550,000 TRADING LOSS
I wanted. To make this video to. Be, of service and help, this, individual, that messaged, me and also. Help others who are struggling I usually. Receive around 40 or 50 emails a day I. Work. Hard to, get, back to everyone in an expeditious. Manner but. I felt that this email in particular, would, be able to resonate, with a lot of people so I wanted. To share. It with the community so. This guy writes or. Maybe. Actually. I don't know if it's a male or a female but, assuming. That it's a male so, hello David so here's my story why. I'm writing and thoughts of what you. Sent me an offer it's, all a real objective, assessment, and maybe some subtle questions mixed in that. I cannot, identify currently. Before, I watch your YouTube videos it's inescapable, to not notice the day trading fraud. Services. Having. Their own commercials. On your, exact, video clips that call them fraud criminals. Lol. Almost. Hilarious, ironic. Then, there is you a guy who claims to have a 90% success, rate rich in selling. The exact. Poison. Those guys tell us to buy math. Seems truly. Possible, due, to the Greeks decay. Mostly. And then, there's me seven, hundred and fifty thousand. By. Age thirty always, saved went, to top schools went to med school then. I was diagnosed, with, disabling. Disease, with. No cure that, caused me to leave medicine, and have a pathetically, small disability. Temporary, policy paying, me every. Month a lot less than I used to earn I panicked. When I knew medicine was no longer my future, I decided, to buy options, to. Try and make up for lost income and trusted, some of those some. Of these other services you speak of you, didn't even know. The biggest fraud services, are those like black. Box stocks uses, pretty-girl marketing. People with, claims of every trade they alert. Working, trade, or lying claims of a hundred percent annual, share. Yup. Share only gains now. Back to me I stupidly. In moments of panic in 2018. When, I knew my med career was over due, to health limitations, I bought options, many. Short-dated and managed to take 750,000. Hard-earned, saved money into. 190,000. Today I've, managed to make things even worse for myself with. With. A limited, shitty, monthly. Income on disability. And I'm, not sure what. To do from here, I've. Tried just about every, psychiatric. Medicine, for depression anxiety, -, these. Turn me into a zombie they made me worse so I stopped taking them, I'm trying, your high-dose krill, oil idea, but overall. 190. 1000 left and no. Idea of how to recover or how. To trust services, where. I pay to hope, to, earn money back I lose, five hundred and fifty thousand, clearly buying options is a. Fool's game. So. You. Know this is a little bit difficult and I. Haven't, really shared a lot of the emails, that I receive, from, people. Previously. But I definitely think that this one is worthwhile, the, first thing is. Let's. Head into the trading so I've never heard of black box stocks I've never heard a trader lying but. The reality, is that the, only thing I know that a lot of people think that I'm very aggressive by. Constantly. Pounding the table on selling options but. The only way that you can consistently, make money and earn predictable, profits in the stock market is by, selling, option, premium you, realize that 90. To 95 percent of our trades expire, worthless and, the. Crazy thing is there. Are people who sell options who lose money like, for example in October. And December if, you. Trade it too large then. You would have been forced to close out your positions, and because. Of that you, potentially, could have lost let's. Say 50 or 60 percent of your account I'm gonna make a video today about option, sellers calm, and what, happened to them is they, trade it too large and they. Got greedy and they got a little bit unlucky so. Even, though that, trade that they put on by. Selling, calls in natural gas after, it moved up tremendously, previously, would probably, be profitable, around, 89%. Of the time if they. Had one-tenth, of the position, that they, had on they. Would right now be up money, because that position, has ended up. Normalizing. And falling, back you know natural gas has declined in price from where, it was previously, but. Unfortunately. People get, greedy the reason why I'm telling you this is. Nothing. Is a guarantee, if you want to make money then, you're gonna have to take some risk and by selling options we. Win 90 to 95 percent of our trades but there are some, people who sell options who, lose money because they, don't have adequate size. Control, and they, tray too many contracts, so, buying options it's. Just like it's just idiocy in my opinion yes, there are some times where.
You Can potentially make, some, money and hit homeruns, like for example Facebook, this, past week went. Up around 15, or 16 dollars after it reported, earnings so, you could have spent like, three or four dollars to buy a call option and then, when, Facebook went up fifteen, or sixteen dollars, that, option would probably show you around a 300 percent gain but, you, do that 10 times and. You're only gonna make money two or three times and unfortunately. For those other seven, or eight times you're gonna lose all the money that you invested, so it's just a matter of time before the. Probabilities, work into play because remember when we sell option, premium we're, acting like the insurance salesman, and like, the casino and the longer, the gambler, pays or, the longer, the more policies, the insurance company sells, the more money they're gonna make so, you, have to sell option premiums the only, way and this is coming from someone who worked on Wall Street I worked. As an investment banker at CIBC, World Markets at, pets keeper neo Morgan, Stanley and I have other videos about, that, and about my experience. Regarding. Other things so about medicine I I know the medicine feel very well my, dad is a, doctor and my, best friend is a doctor I can tell you that my dad did. Not enjoy. Medicine. I don't want to talk about my best friend because he currently, this is but, what I can tell you is when, you go through the, medical. Training. Facility, when you go through medical training and you go to medical school and then you do your internship and your residency. It, just it really beats you down and I have noticed that a bunch of people who. Are doctors, they get sick because they're, working a lot of hours are under tremendous amount of stress sometimes, they have to do things in medical school where they're scared to speak up because they're concerned about their grades being negatively impacted, by voicing, their opinion, so, I definitely think that when. You go into medicine even though you might have, positive. Intentions. At, the same time you, have to understand, that you're going to be, you're. Really going to be sacrificing. Your individuality, and, it's going to be a very stressful environment where, you're going to have to just. Subject, yourself to a tremendous, amount of sacrifice. Medicine. Overall, it's, not something, that I would recommend, but. At the same time, it's. There, are a lot worse ways to make money the. Other thing the. Other two things that I want to discuss one is losing a lot of money and the. Last thing would be mental, health so. Losing, a lot of money I just want to be honest with you if. You lost if, you, lost 500, around. Five hundred and sixty thousand dollars it looks like, you. Can make that money back by selling options so. Can. You turn a hundred ninety thousand, to seven hundred and fifty thousand yes. But, it's gonna take you probably, around I'd, say two and a half to three years I'm. Just being realistic now, if you want you can try to turn, that money from, one hundred ninety thousand, into seven hundred and fifty thousand, and you can try to do it faster the. Problem, with that is if you, assume too much risk, there's, a very high chance and, a very high probability that you're gonna end up losing your money and from, reading your email, I definitely. Don't think that, you, want to subject, yourself. To. More. Losses because, if you are on a fixed income either, you're receiving Social. Security disability, benefits I definitely. Don't think it's worth your while for. You, to try to. Back all of that money ASAP, and, take. On too much risk and potentially, turn, that 190,000. Into, 85,000. What would you do then I think that's psychologically. Speaking it would be devastating, so your best bet would be to. Accept. Your existing, position, look life is very precious and, I. Understand. That you're going through health. Issues, but at the same time if, you have if you're relatively, healthy. Regarding. You, you're not you're, like going to the gym you're eating well you're able to write a coherent.
Email You understand, trading, you, do have. $190,000, you have a stable, income even though it's not as much as you want things, could always be worse you could, have twenty or thirty thousand dollars or you could have less money but the point that I'm saying is you have to forgive. Yourself for, losing the money forgive, yourself because, that money is gone and then. You. Should take. That money and. Implement. A very safe strategy like selling, options and over, two, and a half to three years there's. A decent chance and, I would say probably better than 5050 that you'll be able to turn that. 190,000. Back into the 750,000. Is it guaranteed no but what I can tell you is that if you try to make all, about, five hundred and sixty thousand, dollars back in like a year you're gonna end up losing your money and, it. Happens, with some of my students as well when, they sell options and they tell me that they're up like thirty percent in a month, I don't, congratulate, them I tell them don't. Do that because you're taking way too much risk you. Are trading. And selling options with a strike price that's a lot that's, way too close to the current market price and you're, also trading, too many contracts, so, when they tell me that they're. Up like 20%, or 30% in, a month I don't congratulate them because I just know it's a matter of time, before, their. Aggressiveness. Ends, up blowing, up in their face I tell, them that they should target to make anywhere from 3 to 5% a month and that. Is the stable, return, that, you should target you, can choose strikes. That are far away from the current market price. And you, can also trade. A decent, amount of options but something, that if the market swims like it does like, it did in December you're, not going to be forced into a margin call to lose money but buying options it's like it's, almost as bad as day trading, the. Last thing about, mental, health so just. To preface this I am NOT a licensed. Medical professional, I, am, NOT giving, you advice I have. Never met. With you I don't, know what, the. Illness, is that you're. Current, I don't know what you've been diagnosed, with but. I'm just talking about depression. And. What. I did, in order to help myself so, the first thing is. Regarding. The psychiatric. Medicine. For depression anxiety, has turned you into a zombie yeah. I mean that's pretty much what it does it the lot, of the SSRIs, they, have fluoride in them they mess with your they lower your testosterone so. You should definitely get your your testosterone and also your free testosterone and see what the ratio is because. I can tell you that once I took a lot, of the medication, and decrease my to my testosterone, to a point where it was very difficult for me to remember things to talk clearly to. Process. Information, also. The SSRIs they. Do have, fluoride and some of them have aluminum so not only is it bad for your for, your liver so it's. Hepatotoxic. But, it's also bad for your neurotransmitters. Both your dopamine your, serotonin and also your acetyl coline I know, that some of them are a lot better than others for example wellbutrin, is actually not that bad if, you can take something, because.
I Know that well bution does not depress. Your sexual drive also. I believe that, a little. Bit of, this. Helped me and this was back in like 2008-2009. A little, bit of adderall, now, adderall can be a little bit addicting, but, if you can take around 10 milligrams, or 15 milligrams a day of, adderall. Then that actually will help you now I think that adderall, just pretty much covers it up but. It will give you a clarity of mind where you're able to get, things done if you are depressed so if you take around 10 or 15 milligrams of adderall in. A day you should have around, a three or four-hour window to. To, do your work now again you should discuss all this with your doctor, but. I can just tell you what worked for me so. You. Got. Off all meds and I, did things myself you, need to go to the gym there are other things that you can do you can take cold showers which, is going to increase their brown adipose, tissue and it's, going to stimulate your, immune system and also improve your mood and. Because. It's going to raise your endorphin, level I also have a lamp, that I use a red infrared. Sauna lamp and I like to shine it on my head and I also shine it on my on, my balls actually because it increases testosterone I know that you guys think that's probably crazy but you can get a infrared. Sauna lamp it's a it's a red lamp and my, wife actually shines, it on our face because it increases collagen production but, I shine it on my face on my balls and, it's. Great like an infrared sauna it's super cheap you can get one of those mylar. Those. Mylar, blankets and, you can just create like your own little personal, sauna. That's going, to cost. You only around like 20 bucks high dose krill oil is great another, thing that people do besides the cold showers, or. You. Know going, into like a cold Lake is they, take high-dose niacin. So. Nice and is b3 and you, want the flushing kind. So, you're, probably gonna have to take around 4 or 5 grams of that you should also go to the gym because it'll, help it'll. Help stimulate, a lot of your a lot of the positive. Chemicals. That you have in your body as far as like it'll increase dopamine production, and increase, endorphins. And it'll help decrease some, of the cortisol, levels which are going to decrease your systemic, stress, levels, so, there are a lot of things that you can do as far as vitamins, you. Should also check your vitamin d3 levels, now I know that when you get a blood test they're going to tell you that normal is around 20. 20. Mg, per milliliter, but the actuality, is that you need to get your vitamin d3 levels, up to around 60 mg, per. Milliliter, and you. Also want to combine with the d3, vitamin k2 and, also magnesium because, a lot of people are deficient in magnesium as, far as the type of magnesium, that want to take you don't want to take magnesium.
Oxide. I actually take magnesium Malley because it's better absorbed, and I think that there is um, magnesium, there, innate or something, like that not. A hundred percent sure now, regarding, hormonal, things there, is ways that you can artificially raise, your testosterone level. You can take some pregnant alene I don't. Recommend taking that every single day because it might potentially, reduce. Your body's ability, to produce. Natural. Testosterone but. I take around fifty milligrams or pregnenolone, let. Me see how to pronounce it pregnant alone yeah I take. That around once or twice a week you, could like I said you take krill oil you want to take coquí, coquí ten, because, it's very good for your heart and other things but that's pretty much what I do so I don't know if this is right for you I'm just telling you what I've done and. But, as far as I had to rank things I would say you have to make sure that you, what. I've done is you, cut out all, sugars. So, reduce your sugar intake you. Take, high dose krill oil you, get your vitamin d3 levels, check the, sauna, lamp helps, you, check your testosterone you. Do cold showers, and. For. Me at least I got off all the medication, so, that's. That's, pretty much it if, you have questions, then let me know the, other thing that I want to discuss, is, I. Want. To discuss day trading. So. This, was a study that was done which. Looked. At. 360,000, people all. Right. 360,000. People and. The. Conclusion, was and in in, an average year, 360,000. Individuals, engaged in day trading while. About 13 percent, earned, profits Netto fees in a typical year the results of our analysis suggests that less than 1%, of day traders, 1,000. Of the 360, thousand are able to outperform consistently. It, is worth emphasizing the, outsize alphas, earned by the top 500, so. You're talking about. 101. So, the, outside alphas, out of 500. At a 360. Thousand, so that's what. That's like, one-sixth. Of 1%, something like that right, less. Than that so, they. Pick up so, the, total. All. Right so the outside the. Outside alpha, is that these people is five, percentage, points meaning. That for. The, top one, six, of one. Percent, so, with this is telling you is that. 359,000. Out, of three hundred and sixty thousand, they. Day, traders lose money on, a consistent basis. Now, the, top five hundred, at a, three hundred and sixty thousand, they. Earned five. Percent. Over simply, holding, in s py index, that's, nothing so it's not like you're driving, expensive, cars and, buying, fancy homes know what you're doing when you earn five, percent a year even. In the best-case scenario is your. For the most part eating, off the dollar menu at McDonald's so, you're not driving, fat, whips and, banging. Hot girls instead. What you're doing is you're. Pretty, much giving, yourself an extremely, low probability. Of success. Right. I mean that's what it says like only. One. Only one thousand, out, of three hundred and sixty thousand, make, money and, of. Those people, five. Hundred out of 360. Thousand earn only, five percent a year so that's why I tell you guys that day, trading is a scam. And day. Traders are fraud victims if you want to look at the study it's, right here the cross-section is spectacular, spectacular skill, I'll link to it below and for. The guy who wrote me the email if, you have any questions I'm here to help you and let.
Me Know because, I, just wanted to share this because I think that for many people, his. Email, and the advice that I provide will be helpful thanks again. Also. As a follow up so he just sent me this email just make sure if you ever do mention my soror you don't put the blame on any specific services. Or other people I truly believe my, losses are my fault I chose to buy options, I went against math I used fear of my disability, to cause me to to use being, desperate and afraid to make me. Taking chances I didn't, knew existed or was blind - it's my fault no. One else I hit the button no one else did I took the risks and nobody. Else, can, be blamed but me no one else if. Someone, else. Can, learn to never buy options, especially short-dated. Ones then wonderful but I do not wish to be part of anything where I blame anyone else that's why I declined to offer to be any YouTube blaming, anyone else no, one should, ever blame another person, for their decisions, I truly, believe this it's. Everyone's own decision, for, blaming. Even, the bad service maybe that's. One, place we can disagree as smart men I sure, blame. No one else for. Stupid against math gambling. Never. Ever buy options, regardless. Of your reasons or advice or. Anything never ever do it alright so. Basically. Here's. My, issue one. I do, believe that you're a victim now whether I don't. Really I don't, think it's good to think of yourself as a victim but I also think that a lot of these services. And I don't remember which ones I'm not focusing on those two I didn't, I'm. Not commenting specifically. On any service but, what I am saying is that a lot of these like. Day trading gurus, or the, buying options, what. They do is they, use marketing. That's so amazing that. The, victim, blames. Themself. For. Their losses which. I don't believe is true, like the victim, the marketing is so good that the victim is tricked, into blaming. Themselves. To think that they're the reason that things. Didn't go well but the reality, is that it's. Just math when, you date trait you're gonna lose money as I showed you with that study I mean there's just no way around it and when. You buy, options, you're going to lose money so I. Definitely. Think that it's a learning lesson I'm. Not here to point the finger I'm here, to move forward, and what, I can tell you is just, moving forward from the advice that I provided you earlier I believe, that the most important, thing is to get your mental health in, to. Get that healthy because if you are healthy you can make that money back, it gonna be easy for, you to turn, 190,000. Into 750,000. No, it's not it's gonna take you around probably, like I said 2 to 3 years but, at the same time I would definitely, if.
I Was in your situation. Please. Be grateful, for the opportunity that, you have the, operator that you have the chance to make that money back there, is an opportunity, for you to make that money back and you're, writing well you're able to communicate you're. Able to trade you understand, how things work that, by itself is a blessing. So yes you lost money and you lost a lot of money five hundred and sixty thousand, I also understand, that you went to medical school and you're. Unable to. Continue. Working. In the, medical profession even, though you sacrifice. Around ten years of your life with, undergrad, residency. Medical school etc in order to get to that position, but, you still have hope you. Still have hope so, just. Learn a monetizable. Skill, learn. Something, that will pay you dividends, in the future like learning how to sell options and be, patient, don't be greedy and don't blame. Yourself, I think that's the most important, thing and that's the one thing that really, comes off in this email where you blame. Yourself but. I wouldn't blame anyone I'm. Not don't, blame these people don't. Blame yourself just look at it like a learning lesson I've made a lot of mistakes and I, don't go back and I don't think about them I don't ruminate. I just, try to think, about the present moment and the future what can I do right now to, make my future better that's, what you should think don't, don't, get down on yourself or, get, depressed or get really sad about losing the money because that money's gone and if you try to make it back too quickly you're gonna lose more so. Focus on learning. Skills and focus. On something that you can do in the, you know you, know in the long term over two or three years and I, do believe, that if you make good decisions you'll be able to make that money back so. That's pretty much it if you have any other questions let me know I'm going to post this and I'll send you the video shortly.