Podcast – Episode 110 – How Matt Is Replacing His Income By Trading Stock Options


Podcast Transcript

Allen: All right, everybody. Welcome to another edition of the Option Genius Podcast today I have with me, Matthew D’Ambrosi .He’s one of our passive traders. And he’s gonna be telling us how he got started and how he’s doing pretty well right now. How are you doing, Matthew?

Matt: I’m doing well. Thanks for having me on.

Allen: Cool. Cool. So how’d you get started with Option Genius?

Matt: Well, I have to actually go back, it’s been quite a journey, I have to say, you know, it’s more like a 15 year journey for me.

Allen: Wow. You know, I was given a book by my sister at age 30. And I was a young guy, and I was just more not interested in reading books just kind of floating through life, didn’t really have much direction. And the book was called “Automatic Millionaire” by David Bach.

Allen: Okay.

Matt: In that book, I wasn’t really interested in reading it, but she handed it to me. So I said, at least go through it. And I started thumbing through and I came upon a compound interest chart. And it showed, you know, you’re 19 years old, and you put $2,000 into an IRA, or Roth IRA, and you did that, and you continue to do that, it would be well over a million by the time you’re 65. So I was caught immediately by that. And that’s kind of where my journey began. So I took that information, and started reading more books. And I came across Dave Ramsey. He’s kind of like a financial soldier, if you will, you know, to get out of debt. Yeah, kind of get your stuff together. And I started, I always thought about making money and you know, retiring early, it was always a thought of mine, it was a gold mine, it was definitely what I wanted to do. And I always felt like 65 is when I would do it just like everybody else. And I continue to read more, I read numerous articles and books. And about two years ago, I went to a workshop, and I was learning how to invest. And they introduced me to options and selling options. And I was told that everyone else was told, you know, it was risky. Don’t touch it. There’s a whole another world to me.

Allen: Have you done any stocks or options before that?

Matt: No, absolutely not.

Allen: No stocks either?

Matt: Not really, you know, I was more into mutual funds, I had gave my money to an advisor, I just believe that people had your best interest. And they’re great advisors out there. I’m not saying they’re not. But it really started me to take a hard look about how money is handled. And you’re much better off if you take the plunge and believe in yourself and start looking into deeper and see that they can really work out for you if you’re willing to take or have the interest really to go and look at that. So I started paper trading. And then I was wondering who else does this so I started searching. And then I came across your name, and I have to hand it to your master marketer. I’ve never had anyone hit my inbox like you. So I started listening to all your podcast, taking little by little, you know, all the information that you give out there and started little by little paper trading. And then I started making money slowly, you know, doing one contract, then adding two. And then now I’m pretty much on my goal to replace my income. And that’s my ultimate goal so…

Allen: Awesome.

Matt: Just a regular guy, you know, I just kind of happy to be here. I’m really happy to be here today. Because I want to get the message out that you know, you’re teaching just normal people like me, who have no experience at this. And it’s really a wonderful thing if you’re willing to get a hold of your fears and take a stab at it.

Allen: Right. So you started about two years ago, you said?

Matt: Yeah, about two years ago yeah.

Allen: Oh two years ago. Okay. And you’re still working?

Matt: I am, yep.

Allen: Okay, what do you do during the day?

Matt: So I’m a forklift driver and it’s tough work. It’s very laborsome. And trading has allowed me to look at money in a different way. I just don’t look at money as scarce as it was. So it’s a whole different mindset.

Allen: Yeah. So how do you find time during the day to trade?

Matt: Generally I don’t go until about 2:30 in the afternoon, and I go on to 2:30 at work so I spend the mornings pretty much studying and paper trading and learning and then even after work at 11 o’clock, sometimes I’ll be up till 1am or so learning as well and paper trading and trying to think about things and whatnot so..

Allen: So you’re all in?

Matt: All in, absolutely. They say burn the ships and I burnt them.

Allen: So what was your first trade?

Matt: First trade I did was credit spread. I did far away from the money for about just one contract and I made like 18 bucks. It wasn’t much but you know, you’re, you talked about the options continuum. That was in that stage where I was very nervous and you know, you have these feelings and you feel like you’re gonna lose all your money. And that’s not true, if you study and really take what you have to teach, and I took it very slow and got into it. So after that, after you do, there’s something about to do first live trade, it kind of clicks with you like, okay, that wasn’t so bad, you know, not the think of the worst that can happen. So, yeah, I did it. And it’s been a, you know, I’m gaining confidence each and every week. And, yeah, we just continue to evolve on that continuum.

Allen: Cool. So if I can recap. So basically, you want to get into investing because you didn’t like where it was going. And you didn’t want to wait around till 65 to, you know, have a nest egg and retire and have somebody else in charge of your money. So you started looking at it for yourself, and you’ve been putting in time you’ve been studying, researching trading, paper trading? What else is it that you want to achieve, besides just the money aspect? Like what what is it about the trading that is, you know, speaks to you on a deeper level?

Matt: Yeah, I think the main part and it’s different for everybody, for me, it’s actually you know, as you get older, you realize you don’t know how much time you have on this earth. And, you know, you start looking at things like, Hey, you know, the time is right now. And if I can find a way to free up some time, I’m going to seize it, because I never want to look back and say, “Hey, you know, I got to 65” I’d be glad if I do. But to spend time with friends and family, I got, you know, parents are almost in their 80s, I would love to just free up just a little bit of time and already am and I’m already you know, I already feel successful. And that, you know, I found something that I can do and free some time up and actually see them.

Allen: Okay. So when you say you feel successful, what does that mean in numbers?

Matt: Numbers to me, it’s like just even $500. And it’s different for everybody. There’s no doubt. I mean, $500 extra dollars a month is successful to me. It gives you just a little bit of breathing room. I’m a simple person, I don’t need a lot. I drive a 2200 accord. I mean, it looks like it’s gonna fall off the road. I’m not a man to really, you know, I love great things. I would love to get in a nice, wonderful car, but it’s not the main driver for me. The main drivers just to spend quality time family and friends. Absolutely.

Allen: Nice. Nice. Okay. So would you mind sharing how large your trading account is now?

Matt: Yeah, I started with in the brokerage account, I started about 2 Grand, and I’m already up to about 16 right now.

Allen: Wow, in two years? Yeah, that’s phenomenal.

Matt: Yeah, I mean, I’m also adding to it too, but..

Allen: Okay.

Matt: It’s amazing to see the compound interest grow. And I haven’t been really calculating it like dollar for dollar. But I’m just more really tuned into just being successful and working through the trades. And not really focusing so much on, you know, $1 amount just being, “Hey, let me get this tray. Let me monitor it. Let me look at it. Let me learn from it”. If I have any problems, if I look at it as a learning experience, I have to continue to go I want to be in it forever. You know, I want to continue to I want to be that guy standing, you know, 10 years, 15 years from now and still doing this.

Allen: Okay, so you don’t want to be a forklift driver anymore?

Matt: No, I say, you know, I’m sure there are a lot of people who listen to podcast saying I hate my job. I do not I actually enjoy driving a forklift. I just don’t want to drive 40 hours a week.

Allen: Okay. Okay, so what type of strategies are you using?

Matt: So right now I’m doing a lot of bull put spreads, I’ve ventured into bear call spreads. I’m also doing covered calls. I haven’t done any naked puts yet. So I’m really kind of looking at some companies and, uh, you know, I want to know more about the companies and look at stable companies like you teach us and start doing options off of them. So, it’s an ongoing process and what amazes me that you don’t need to do a lot of different strategies to be successful.

Allen: Right, right. Right. Okay. What’s your if you had to only pick one, which was your favorite?

Matt: At the moment, it’d be a bull put spread, but I have a feeling that’s gonna change.

Allen: Yeah depending on the market.

Matt: Also venturing into into oil, like you’re teaching in your program.

Allen: Cool. Yeah. Welcome to that program. Yeah, it’s definitely it’s definitely the next level of stuff. You know, it moves faster, and it’s more leverage. So the numbers are bigger.

Matt: Yeah.

Allen: Cool. So have you tried anything else that didn’t work?

Matt: You know, I’ve done about 60 trades so far. I’ve lost one. And I got out early, it would have worked out. And it was my first time losing money, but I look at as a big lesson. You know, there’s a lot of feelings. I listened to one of your podcasts where you talked about how you lost and the feelings that surround that. Right. I think you have to kind of reevaluate and find the lesson in it. And the lesson I found in that trade was that I was trading too heavy. I was a little bit. I was actually doing too many contracts. I was a little bit too uncomfortable.

Matt: So that it was is a really good learning experience to say, Hey, you know, I’m not really comfortable risking that much money. Let me just pare it back a little bit. And think about what I want to do here, so.. okay, that, you know, the experience of actually getting out of a trade out of our live trade because you know, your bloods pumping, and you’re like, Okay, you know, am I hitting the right buttons? And I get now it’s a little different than paper? Of course.

Allen: For sure. Yeah. But did you say you did 60 trades and you only lost on one?

Matt: Yes so far…

Allen: And these are all real money?

Matt: Real Money, yes.

Allen: Wow. And what’s your strategy? How are you doing that? Would you find that trading plan? That’s amazing.

Matt: You know, it’s a lot of listening. I’ve read so many books, listen to podcasts, listening to education, I kind of go, I’m a very conservative person. So I trade very conservatively. So about 90% out or more, I try to get at least 23 cents, 22 cents, and then just move my contracts up as I feel comfortable taking that risk.

Allen: Okay so if I heard you correctly, you are trading at about a 10 delta spread?

Matt: Yeah, usually.

Allen: And then you’re trying to make about 5% on each trade?

Matt: Yeah, but between four and 5%

Allen: Between four or five? And how long do you stay in the trade?

Matt: You know, it’s almost embarrassing, but that’s the level of how you get better. I really have my you know, you talk about your AHA moments, and one of them was mine. I didn’t know you could get out of the trade. So I was always thinking you had to be there until expiration, but that’s not obviously not true. So that was a big one. For me, I have to honestly say that, you know, when you’re learning this, you just don’t think of you don’t know everything. Right? And I was like, oh, my goodness, you can actually get out of these trades. So I learned to get out. So you know, that’s a benefit in my world, once you know how to get out, it takes a little bit of fear out.

Allen: So when do you get in? How many days to expiration to get in?

Matt: Generally, I’m between 28 and 35 days or so.

Allen: Okay, and what how many trades at one time do you have on?

Matt: I really try to do only as many as I can comfortably watch. I try to do maybe one a week. So about four trades at most that are going on?

Allen: Okay, so four trades at one time. Okay. And so how much would you say you’re making on a monthly basis? dollar terms?

Matt: Well across two accounts. So I trade in my brokerage account, I trade under my IRA, I rockler. Right? I’m averaging about 1000 a week now?

Allen: 1000 a week. Okay. That’s amazing. So within two years, you’re up to 4000 a month. And you’re saying your account value is roughly around 16?

Matt: Roughly 16. And then, you know, in the Roth IRA, it’s considerably higher, but that’s not money I really want to put a heavy risk of short term trading, but I do trade there.

Allen: Okay. Yeah. Okay. All right. No, that’s, that’s crazy. And you’re saying that you’re almost to the point where it’s getting close to where it’s gonna replace your income or equal your income from..

Matt: Yeah I mean, I have no qualms about it. I my goal is to get make $5600 a month. And I know my number and but it’s all about, you know, I guess one of the big reasons for me coming on is that you just have to trust the process. And you have to actually become in love with the process not be so result driven. I mean, it’s important, you know, we all want results. But if you can find a love for the process, I think you’re that much better?

Allen: For sure. Definitely. Yeah. Because, you know, like you said, You’ve been putting in the time you wake up and you work on it. And then after work, you know, tired long day, but you still sometimes you still get it and to look at it being you wouldn’t do it if you weren’t like happy and excited. It’s really something to find something. I feel like this is a point in my life where I really found something I love to do. And I really do. I really love this. And, you know, it’s, I just want other people that are just regular people like me, and people come all the time and say, you know, you can do this and do that. But I am I tell you to my core, I’m just a regular person, I drive a forklift. And if anyone can do it, you can do it. And thank God, there are people like you have to teach this stuff. Because I would have killed 20 years ago to have someone guide me through just hitting me across the head of the board and be like, Hey, you know, listen. But that’s not how life works.

Allen: Right, no, yeah. You know, when you’re ready, the teacher appears kind of thing. You know?

Matt: It really is true.

Allen: Yeah. Yeah. So the biggest thing that surprised you when you were doing this stuff, besides that you could get out before expiration?

Matt: Oh, yeah, that was a big one. I think it’s coupled with what other people say but also with what I think is that you can trade on something that you don’t own. I think that’s a big thing for people. Because we’re just conditioned to be like, you know, if I can trade something, I have to own it. And that was a big like, wow, for me, for trading. You know, also the covered call as well.

Allen: Okay. And so what was your biggest challenge?

Matt: The biggest challenge for me was overcoming your fears. I mean, it’s, it’s definitely a big fear. And I don’t take it lightly. Because, you know, we all worry about losing our money, we worked so hard for it. I mean, I work 40 hours a week just to make the bills and do everything that we want to do, we want a better standard of living. And it’s very scary  you know, you can think about losing all that money and a flash, and that’s really fearful. And I think that’s the biggest obstacle, but be to be able to papertrade it and learn from people like yourself that have gone through it. And like, they say, taken the arrows is all much better. I mean, you know, it’s like, I talk to people, it’s like, you’re in a forest, and you don’t know which way to go. And it’s like, you have someone like yourself or someone else that has gone through this. And we’re like, Hey, here’s the path. You know, over here is a ditch over here, you know, there’s a lion, go down this path, and you start to understand otherwise, you’re just flailing around, and you’ll be lost in that forest forever. So, you know, it’s just one big journey, to be honest with you.

Allen: Yep. Yep, yep. Yep. So is that the biggest thing that helped you overcome the fear? Got me a lot of people have that fear. You know, it’s like, oh, my God, if I do this, what’s going to happen? What if I press the wrong button? What if they take this away? What if you know, something, I do something wrong, my wife’s gonna kill me, you know, how did you besides the paper trading was that the biggest thing that helped you overcome the fear?

Matt: I think also, the actual structure of a credit spread, you know, knowing that when I have a set amount of money, that it’s risk, I can only lose like, $500 in a trade or 480. That really helped me, okay, I was like, Okay, if you’re uncomfortable, overall, losing $480 in this trade completely fails. And that’s all I’m gonna lose. And I wrapped my head around that, then I can get past that barrier. And I can trade more and learn how to trade. I think initially, you just have in your mind that you’re gonna lose all your money, which is not true. If you, of course, you I mean, you have to study and you have to pay attention. None of this is easy or simple. But you got to put in the time, I’m not saying you don’t. But if you really want to, and you’re, you have conviction, and you have desire, there’s no reason why you can’t do this stuff.

Allen: So what do you think the future holds for you now?

Matt: Well, I hope all good things. I mean, I go on with the, I hope I go in with the attitude. I’m really happy and excited to be part of the the oil, that’s a whole another, the oil blank check trading program. It’s a whole another world for me. And, you know, I kind of feel like, it’s traded like options, but it’s very different. And then I have to get in there. And it’s like, you know, I’m back at the beginning a little bit. So I got to get him up to speed and learn that it’s a whole another world. So you go through those feelings again, in a different way. So I’m kind of in the beginning, but I’m very hopeful for the future. And I just want to continue to be consistent and profitable. And that’s all you can ask for.

Allen: Yep. Yep. So would you recommend Option Genius to other people?

Matt: Absolutely. I mean, I sing your praises almost all the time. I one of the big reasons is that how accessible you are. And you know, whenever I had a question, you guys are on top of it. I mean, I couldn’t ask for any quicker response. And if you have a problem, you feel like someone’s right beside you. And I really appreciate that. So yeah, I’ve absolutely, I would tell anyone to go to you and learn from you learn from you on the program.

Allen: Yeah, we try. I mean, we’re not perfect. And we don’t work weekends. But some people, some people are like, Oh, I bought this thing on Saturday. Why haven’t I got it yet? I have questions. I’m like, Oh, we don’t work weekends, you know. See that’s part of the job here. You know, I talked about it on the podcast, and the books and everything. It’s like freedom. You know, that’s the ultimate, the ultimate goal is freedom. And however you define it, yeah, the time to do what you want the money to do what you want, and you just, you know, if you want to go here, do this, or whatever, buy whatever you want. Like, I’m so happy and excited that you’re feeling a taste of that, you know, it’s like, “Okay, if I’m going to work, I’m going to make X dollars, but I can always be laid off”. I can always get hurt. I can always, you know, get sick. I mean, so many people right now are getting sick and they can’t work and they’re all scared because they don’t know what they’re going to do. And you know, the fact that you’re you found something that you can stay at home, press a few buttons, and you understand it and you’re like, Okay, intellectually, I can make this work. And you put in the time in the effort. I’ve seen that. So kudos to you for that. Because I’ve seen a lot of people. They’re like, Oh, yeah, no, no, this is supposed to be magic. I’m supposed to hit the Escape key and I’m supposed to get money coming out of my computer. Well, it doesn’t work that way. You know, you have to put in time, effort, thought process. You have to do it over and over and over again, which you’ve done for the last two years. You’ve been putting your dues in I mean, obviously you’re not done yet. Right? You still got a long way to go.

Matt: Oh, yeah, absolutely my goal is never to be complacent. You know, never think I’ve no at all, because I do not. There’s people out there that are very smart, intelligent, people that are learning, I always look at life, you can learn somebody, something from everyone, just like all the people, all the books that I’ve read, if you can get one good thing out of them, you can learn something from them, you’re all the better. You know, I just learned to not look at one thing as the way there could be multiple ways. But you know, you have to take the good and almost make it your own as well. You know it, but it’s on you. And you as you get older, you realize that it is on you to make this decisions. I don’t want to bury my head in the sand and just hope you know, I wake up at 65 and I’m retired. So it’s a process. And luckily, I fell in love with it.

Allen: That’s great. That’s great. So let’s say you get your goal and you’re making 5600 a month from your trading. You still going to work?

Matt: I think initially I mean, you know, it’s a wonderful question to answer. I think initially, I would go with part time, because I like I do like my job. I do enjoy driving a forklift. But um, it would allow me to do some other things that I would want to do in life. I mean, I like gardening, I like painting, maybe learn Spanish, I always want to learn Spanish, you know, and I could put my efforts towards that. It’s just, it opens a whole another world for you. And I mean, it really does. And it gives you a chance to maybe go into some things that you never dreamed that you would be. For instance, after this, I’m going on a boat, I would never dream that I would learn, I always didn’t want to drive a boat, I was afraid to drive a boat, I was afraid I was gonna to crash into a dock. But I’m a member of a book club now. And I’m going to go out my wife after this podcast and get on a boat. And I’m learning how to drive and docket and it’s like I believe trading is broad and open that world for me. Because I’m no longer fearful making mistakes. And I’m going to learn from them. And, you know, if I crashed into into a dock, so be it. I’ll learn from it. And I’ll get better. So that’s the way I approach life now. And I think trading is a big part of that.

Allen: Oh, that’s wonderful. So the fact that you’ve been you’ve had some success in the trading has given you confidence in other areas of your life.

Matt: Absolutely. That’s something I can ever believe. Yeah, absolutely.

Allen: That’s so beautiful. Okay, so let’s say one of your fellow employees at Costco, you’re at Costco, right? Yes, yeah. So if one of your fellow employees at Costco comes up to you and says, Matt, man, I got to do something. You know, you told me you talked about trading a little bit, how do I how do I get started? What do I do? How do I make sure that I don’t lose money?

Matt: Well, go to Option Genius. But I would more so I would tell them that, you know, it’s a process and you have to put in the work. There’s no shortcuts. And you know, people say that all the time. And you have to really believe that in your heart, and you have to put in the work. And thank goodness paper trades out there. And you can make mistakes and learn from them. And just keep trying. And then when you’re ready, do it. Somy advice is to absolutely take it slow. You know, everyone’s different. You could paper trade three months, six months, but don’t be hanging up for a year paper trading. I mean, you want to get out there and try. So but do it with a little bit of money that you’re finally losing, and then just go on from there and reevaluate your process. So that’s the advice that I would give them. And, of course, I want to help everyone out there, you know, because I have co workers that are in the same, I know the grind they go through each day. They’re hard working people, they’re looking for the same thing I am that they’re trying to look, you know, to better their life or help people that are left to right of them, and get through and improve it. And, you know, this is out there for them. So I’ve just tell it, take it slow, be patient. I mean, it’s very difficult to be patient, especially this day and age. But if you can harness that patience, you can achieve what you want to achieve.

Allen: Well said, Well said. Yeah, I mean, you know, the cool thing is that we’ve I guess since you started, I think you’ve been sending us emails every once in a while.

Matt: Probably a little crazy. Yes.

Allen: Yeah no it’s okay. It’s not crazy? I mean, you know, I bombard people with email, we generally like to sometimes people, some people get three emails a day from us, it’s like crazy. We need to work on that.

Matt: I’m one of those people. And I’m like, wow, I’m like, man this is something else.

Allen: There’s too much going on. Yeah. So we need to work on a little bit there. But you know, so it’s been fun to watch your progress over the past. You know, it’s like, I try to if there’s a trading email or whatnot, I try to read those. And if I don’t answer them, at least I try to read and see what’s going on. And I’ve seen your emails come through, and it’s like, you know, this guy, he’s getting it, you know? And whenever you ask a question, it’s like, there there are some people that they’re nice about it. And then there are some people who are like they expect the moon and the stars and everything in an email like, “Hey, I’m on your list. I want you to tell me every one of your secrets”. Like how am I supposed to do that in an email?

Matt: Yeah that’s impossible.

Allen: We share that for you. Like we could have a course about that. It would be like a 20 million-hour course. I could share everything and bring an email. I’m not writing all that stuff. But the fact that you took it slow and methodical and whenever you, you did the work. And then when you had a question, it was specific to that particular thing. So you could tell when I’m reading, I can tell, okay, this guy is actually trying to learn, he’s actually trying to trade. And this has given me a question based on his actual experience. So I mean, that’s in, you know, for those of you who are listening and be like, Oh, well, I asked a question, I didn’t get an answer. Or, you know, he didn’t give me a complete answer or whatever. It also depends on, you know, how you approach the question how the question is asked, and if it’s gonna make sense or not, because we do get inundated with trading questions, and how do I do this? And how do I do that? And without proper background, we can’t even give individual moves. Legally, we can’t give individual advice. But even trading questions, it’s like, okay, if I don’t have the proper background into what you were thinking, when you were looking at a trade, then I can’t give you a, you know, what I would do even because if I’m looking at a chart, and I think it’s going to go down, and you think it’s gonna go up, whatever I tell you, it’s gonna be the opposite. And you’ll be like, that doesn’t make any sense. So I love the way that you have approached this. And you’ve been, you know, slowly, methodically, you pick something you realized from the beginning, you knew what you want it, you knew your why you understand, you know, compound interest, you understand how that works? And it’s not going to happen overnight. How long do you think it took you until you started becoming like, consistently profitable?

Matt: I would say about three or four months where I felt consistent, you know, first, you know, you could say, Oh, you know, it could be you just not, you’re not sure until you really feel like, okay, I can repeat this month after month. And third kind of understanding, you know, not only the positives of a trade, but also the negatives, and you start kind of wrapping your head around it and start feeling comfortable, but not complacent, then you start, you feel like you’re on the right road, so that that feelings and the results probably about three to four months for me specifically where I felt confident about the trade.

Allen: Okay, and you trade the same stocks over and over again? Or do you choose different ones every time?

Matt: I’m looking, you know, basically the same. You know, I tell the story, way back, I bought Airbnb, you know, an IPO, which stands for is probably overpriced. And I consider it as a mistake. But my wife and I did a covered call together, and we literally push the button together. And we’re like, we made like, 500 some dollars off of that. And I was just like, we were just like, baffled, like, wait a minute that actually work. Like we just got paid for that. And we’re just like, How can that be? So, you know, I read books on covered calls and things like that. And, you know, there’s there’s downfalls of covered calls as well, the dark side as you speak. And it’s important to, to learn all the different strategies. But the point is, you don’t need to know a ton of strategies to be successful, I think it’s important for the viewer to focus on one and get really comfortable before you move on to other things. And I feel that’s kind of where I am with oil now I’m comfortable with a trade and now unwilling to go into another world, and kind of explain that or, you know, explore that, and I’ll take that slow as well. And, you know, it just starts being well, and overall process and you bring it together. And it’s all about learning and what a beautiful thing.

Allen: Yep. Yep. Very beautiful. So, and there might be some skeptics listening to this. And they’ll be like, Well, you know, the last two years, we’ve had a really good bull market. So are you prepared for choppy market volatile market? down market? bear market? How would you adjust to that situation?

Allen: You know, I think it’s, I look back, I’m actually reading your book right now, how to hedge, you know, all the hedging strategies, and what I always call my replay in my mind, what will I do if there’s a big crash, and I don’t think you can ever, you know, fully prepare yourself, but there’s a lot of things that you can do. I think the most important part of that is knowing a valuable company, it’s knowing what kind of strategy you’re going to use, you can never do bull put spreads continually, because you’re going to get hit at some point. Right. So again, learn how to do a bear call spread and do some different things to hedge your position. So it you know, that’s education by itself, but there’s definitely some big things. You know, you got to look at each thing of, you know, a comfort level and then continuing education. I definitely am. I’ll continue to get better at that as well.

Allen: Yeah, yeah. Because I mean, there’s no way to tell which way the market is going, you know.

Matt: Sure.

Allen: I mean, we’ve been lucky that we’ve had a nice fed induced (inaudible) rally recently, the last couple years. But again, we don’t know how long that’s going to last and what’s going to happen after that. But as somebody who has been doing this for, you know, a little bit longer than you have.

Matt: Much longer.

Allen: It’s good to be able to, like you said, you know, understand the different strategies as well. And you said you’ve done you know, two or three of them and you’ve, you’ve practiced them over and over again. So that when things do change, that you can also see that coming and then you can change with it. So You know, I was talking to someone earlier today, and we were talking about and he was, he was asking about iron condors. And he’s like, yeah, you know, I’ve tried honor condors didn’t work at all. So how do you make them work? I said, Well, you know, every strategy doesn’t work for every person. Some people might like one strategy, and they’re really good at it. And somebody else, their brother might try it. And their brother might be horrible at it. You know, it’s different risk tolerances, and different personalities will tell what strategy you should work on. And so..

Matt: Yeah, that’s really fascinating. Like you said earlier, you know, we talked about how you can get the same trade as somebody, it just turns out different. And I think it’s, it’s fascinating in psychology, and it’s also how, you know, you think of a trade and everyone’s into individual to that trade. So it’s pretty interesting.

Allen: And you said, you had studied psychology, right? in school?

Matt: Yeah, I have a degree in psychology from the University of Alabama. And, you know, I just, I never knew what I wanted to do in college. And it’s interesting, I find myself using it. Now. I it’s the psychology of the markets. And I think about how why people sell and why people buy and, you know, a lot of it’s fear based, sometimes people that are very smart, do stupid things. You know, you just think that it’s not that way, but it is very true. So it’s, it’s a whole, I never thought I’d be using psychology, but I do. I’m fascinated why people think the way they do.

Allen: Yeah, yeah, yeah. It’s interesting. It’s very interesting. Yeah. I mean, I’ve been a big fan of psychology, just trying to understand myself, you know, and most of the time, like, you know, when we try to figure out, okay, hey, this stock went down today, what happened? A lot of times, we can’t figure it out. I don’t know, there’s so many. There’s so many background factors. But I think the study of psychology really helps in the big picture thinking, you know, you might not be able to figure out exactly why a stock moved up and down, depending on if there’s some news about it. But the overall market like, hey, if this happens, then this is how people react. And then this is how they think. And then this is what happens in the stock market. So it’s definitely a learning experience. And something that comes with years of experience, as you get used to it, say, Okay, I saw this happened. So I, I expected this to happen because of that. So it’s really interesting.

Allen: I really appreciate your time, Matthew, and just wanted to give you one more, you know, like hey, is there anything else that last words that you want to share with our audience?

Matt: Just I encourage people that are, you know, maybe thinking just like how I am, you know, they’re out there working everyday life, and they just don’t think that this is possible, and I just wanted to really encourage them to, you know, take a shot at it. And really, you know, if you’re really interested in it, and put your 100% into it. And, you know, you could really surprise you on the other end, what life has to offer to you if you really get into it. And trading is a wonderful way to do that. So I’d really encourage people of all walks of life to try to better their situation, I think it’s a great, great avenue to do so.

Allen: Right. And you got started again, how? Just by reading a book?

Matt: Yeah, I was just really looking at a compound interest chart. I was just, I just looked at it. And I was like, man, I could just kind of see the overall plan. I was like, I didn’t know, you know, you know, everyone wants to be rich, and they want to have enough money. And it was a different feeling. At that time, I was young, and you know, mostly when you’re young, or just want to get things and accumulate things and, you know, burn the world down. And that’s not the case, as you get older, usually, you know, you, you find out what’s really important. And to me, it’s time with family and friends. And once I saw that chart, I could see the kind of overall kind of structure if you will, what I want to do. And then now as I got into it, I started filling in the blanks and seeing what way to get there. And trading is really kind of sped that process up. And I’m very excited about it.

Allen: So do you see yourself like, okay, hey, you know, and this year, or this keeps up and you know, this age, I’m going to be a millionaire or 100 millionaire or something like that-  that doesn’t appeal to you, right? Or does it sometimes?

Matt: You know, like, I have a goal of turning you know, our money and making a million dollars. And that’s, I wrote it down and seven years, I’d like to do that. If I don’t get there, I’m not going to be upset about it. Like I said, you have to be happy about the process and excited about the process. And long as you’re generally heading the right way. You can’t help but be happy. I mean, if there’s little setbacks, but if your general trajectory is moving forward, that’s all you can ask for. And we’re excited about that. So, you know, the number is less of a issue to me, as I get into it, you know, it’s a great thing. And it’s a great byproduct of what we’re doing. But I think you just got to really look inward and be contentment and what really makes you happy in life, whatever it is you’d like to do. So, you know, money is just a tool to get there. And I I really feel that at this age, you know, it took me 20 years to figure that out. But yeah, it’s exciting.

Allen: Yeah, I totally agree with you and I’m excited for you, man. It’s Just like, you know, you just get started now it’s just, it’s just up from here, you know, it’s just the sky’s the limit, and you know, a million dollars one day, you’re gonna be like, Oh, that was nothing, you know? Let’s go for 3, let’s go for 5.

Matt: You know, if not, I always say, Hey, you know, I can be happy I took a shot at So, you know, yeah, I left everything on the table. And that’s what you have to do. And I couldn’t be happier about that.

Allen: But you’ve gotten it done. You know, it’s not, it’s not like, You got lucky, you’ve been doing it for consistently, you know, over and over and over again. And yeah, we’ve had a good market. And that helps. But you know, every market can be a good market, if you know what you’re doing. So the fact that..

Matt: I’m very worried about that, because I started investing in 2009. Okay, so I’ve never seen a crash. And I know that and I’m aware that and I also look at, hey, what are my feelings going to be? And I try to read books about it, and listen to people and talk about their experiences, because I want to know what to do in that situation. So I could, that’s a continuation thing for me. I mean, I know I have not been in a crash. That’s all been up for me. And but I do know that I have to be wary of that. And I have to have a plan for that. And that’s what I’m doing right now. So, you know, I don’t want to get complacent and that I’m winning and winning and winning, because losses could be around the corner. And I just gotta know how to mitigate that process.

Allen: So and see, I mean, just that comment right there. That’s like, you know, this guy knows what he this guy’s got a head good head on his shoulders. You know, he’s not he’s not overconfident. And he’s not like, Oh, yeah, this is gonna happen for the rest of my life. I’m just gonna make money every month. No, I mean, I’ve been looking at it from all different angles, and you’ve been practicing and trading and different things. And you said, Oh, yeah, I’ve been doing put spreads. But I’m also doing call spreads, you know, because eventually, I’m going to need them. So it’s like, yeah, there you go. That’s it. I appreciate that. Thank you. Yeah. I mean, you do it the right way. You’re doing it really the right way. And you started small and you’re, you know, slowly, slowly, you’re increasing. But you’re still sticking to, you know, something that’s manageable. You’re not Oh, like you said that one trade I had. I mean, oh my god, out of 60 trades you’ve only lost one that’s like, incredible. I never heard anybody do that. That’s like, Well, can I give you my money? I want to go sail around the world here. You just take it in, take care of it for me.

Matt: You can’t have it back on if I lose it? Yeah.

Allen: No, I think you’ll be okay because you’re getting prepared for it. You know, you’re not blindsided. It’s like, yeah, this is part of it. I’ve seen it. You know, you’ve maybe you haven’t seen it yourself. But you’ve heard of it. But you’re not. What are you like, 45 years at?

Matt: I’m 45

Allen: Yeah, so you’ve been alive when there has been crashes? And oh, yeah. and stuff, you know, the.com bubble, everybody still remembers that? No, tell you about that. And, and stuff like that. So it’s not like it’s something completely out of the blue for you. If somebody was like 15 years old, or 20 years old – they’re like, Oh, yeah, you know, I’ve never seen America crash. It’s never gonna crash. But yeah, it’s there. And you are, you’re rounding out what I, you know, like, it’s like, it’s not just, you focused on something you learned about it, you practiced it, and you’re like, Okay, this is working. Now I need to add to it, I need to add another skill, I need to add another skill. And you’re, and you’re still adding, that’s the coolest thing that you’re still growing, you’re still learning. And you’re still humble enough about it, so that you’re like, you know, hey, I’m still working. And I work hard, and I have a good job, and I like it. But I would like to have more. And then eventually, I’m gonna work part time. That’s really cool. Yeah.

Matt: I actually parallel investing with running a marathon. You know  running marathons is a very difficult process, and it takes a lot of work. And there’s a lot of dips along the way, and at times you feel like quitting, and there’s a point of elation, and you have an angle. And I kind of feel like that kind of parallels my trading style. So I know that there’s going to be, you know, mile 15 is going to be horrible. And mile 18 could be even worse. And then you get the mile 24 and you’re like, elated. It’s almost at the end. And that’s kind of how investing is, you know, you have great times and you have terrible times. And you have to, you know, when you’re training, you’re accounting for all these processes along the way. You know, what shoes do I wear? How do I do this? If it rains? How do I count for this? I don’t feel good. How do I account for that? What did I eat? all that stuff is very similar to how trading is in trading really, you learn a lot about yourself, just like you do in marathon running. I mean, you learn about what you’re really made of, and the risk that you take and who you are as a person. So I think there’s a lot of parallels there.

Allen: Wow, yeah, I’ve never run a marathon but it sounds horrible.

Matt: Yeah, I mean, people are like, they’re either they do it or they want it done. I’ve got the bug. I was crazy. I decided doing but um, I don’t do them anymore. I maybe maybe have one or two. I mean, I will see but uh, you know, I want to keep my knees going into my 50s.

Allen: Cool. All right, Matthew. I really appreciate it. This was great. I mean, it’s wonderful to see you know, somebody go from knowing nothing to making you know, four grand a month trading part time. And, you know, it’s like, Hey, I can do this. If you can do for you can eventually do more, and it’ll replace your income and make all your dreams come true.

So kudos to you for getting in the path, taking the risk, and trying it out, learning, spending the time, and I hope that people listen to this and they’re encouraged by it, they’re inspired by you, I mean  when I heard your story, I was like, “we gotta get Matthew on the show”. You know, forklift driver to early retiree.

Matt: Yeah I hope so. I appreciate you guys and I can’t thank you enough, you and your team, that there’s actually people out there that teach this stuff and actually care about people, because there’s a lot of people that don’t have it all and I really appreciate that.

Allen: Thank you

Matt: Yeah I’m sure your viewers appreciate it as well.

Allen: Yeah thank you for hanging out with us.

Matt: Alright, thank you.


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