The biggest mistakes in option trading I see are when people choose to learn by experience instead of learning by wisdom.
Yes, experience may be the best teacher, but it's also the most expensive one.
There are two ways to learn:
Learning by experience is cheaper on the front end, but more expensive when all is said and done. Learning by wisdom is more expensive upfront, but cheaper in total cost.
Many years ago I stumbled across a Millionaire who offered an option trading course that would teach me how to trade stock options.
Everything sounded awesome. It was just what I needed. But there was one big problem…
It cost $5,000.
I was broke. And this would mean maxing out the last credit card I had with any remaining funds available.
Growing up poor I was taught that rich people were evil and greedy and out to take advantage of you. And this "opportunity" sure felt like it.
Luckily I had another mentor who helped me to see that the $5,000 I paid was not for the education, but the 20+ years this guy was saving me.
It would have taken many years of trial and error to learn everything that was taught in the option trading class. It also showed me how to avoid the biggest mistakes in option trading.
There are more, but here is the point…
I could have taken the grass roots route and learned for free by scouring the web and trying to put together my own option strategies and techniques.
It would have been cheaper, but I also would have lost a ton of money in the process. That is just the nature of how trial and error works.
Learning from experience means you have a ton of failures until you find a winning combination.
So by signing up for an option trading course and learning from someone who's been there and done that...I was learning by wisdom.
And in doing so I discovered the ultimate short cut to success:
"Find someone who has already done what you want to do and just follow in their footsteps."
It cost more on the front end, but you also don't waste a ton of money figuring out what doesn't work.
Every single wealthy person I know follows this formula.
Watch the following video to see actual trading results…
Two people took the SAME option trading course. One person grew their account to $83,000 and the other trader ignored the advice given in the course and lost $70,000.
It's like telling a kid to not touch the stove because it's hot. Some people just have to touch the stove anyway.
So you have a choice...do you want to be the person who made $83K and kept it all or do you want to be the person who made $38K and lost it all and some...
You can make consistent profits trading stock options, but it will depend on your ability to remove yourself and your personality quirks from the equation.
Mastering online options trading is essentially an exercise in mastering yourself and your emotions.
Making a ton of money with options in a very short period of time is possible, but that extreme possibility works in the opposite also.
You can lose ALL of your money in a short time because of the leveraged nature of options so it's important to...
The biggest mistakes in options trading can be avoided. When I first started trading I was an idiot and paid the price of stupidity. I paid the price so others that follow me don't have to.
And here is what I learned the hard way...all the advice in the world can't help you if you choose not to follow it...
So don't forget the ultimate success formula: find someone who has already done what you want to do and just follow in their footsteps.
It may be more expensive on the front end, but the pleasant tradeoff is that you don't waste years with trial and error. The time saved can be spent living the life of your dreams.
And that sure beats 20 years of trial and error with no guarantee that you will ever discover what really works.
The one simple tweak I made to my approach that helped me go from being stressed and overwhelmed to consistent success with options is I found a mentor.
Wealth Building Resources
Free Video Case Study (Newsletter)
Options Trading Made Simple Book (My Kindle book)
Options Wealth Academy (High End Training Program co-founded by Travis)
Programs Trader Travis Reviewed
Trader Travis Rants