Podcast – Episode 116 – The Fastest Way to Learn How to Trade Options


Podcast Transcript

What is the fastest way to learn Options?

I want to learn to trade Allen. What should I do? How do I get there as fast as possible? Nobody wants to take the long way, right? Everybody wants to take the shortcut. Nobody wants to be like, alright, Allen, I want to take 20 years to learn how to trade and make money No, everybody wants it today, they want instantaneous results. Right now right now. So let’s go over some of the things that I think can definitely help you, in your Options Trading journey, that can definitely speed up your path, right? Get you to your goal, the fastest. And that is actually number one.

That’ll be number one on the list is you have to know your why you have to know why you’re doing this, you have to know why you’re trading, you have to have a deep inner reason. And you know, if I asked you “Hey, why are you trading?” It’s gonna be the first and everybody says, “Oh Allen, I want to make more money. Allen, make more money”. Yeah. Okay, great. I know, I know that, right? That’s a superficial answer. Everybody wants more money, of course. But why? What is it? And we’ve talked about this before, we’ve talked about this in our live events, we’ve talked about this on the podcast, you got to know why. And you got to dig deeper and deeper until you figure out like, hey, you know what, I want more money because I want more security, because I want my kids to have things I didn’t have when I was growing up.

Because I want to make the world a better place. I want to start a foundation and give back have a legacy. You know, donate money, blah, blah, blah, whatever it is. That’s your thing. Doesn’t matter what it is. Right? But that’s going to keep you going. And that’s going to help you remember why you’re doing this because it’s a path. It takes a while it’s not overnight that you’re going to turn into an Option Millionaire, right? So you need something to keep you going when the times get tough. And they do get tough. markets don’t cooperate all the time. You know, we think they’re going to do this and they do the opposite. And then we have to adjust, we have to run and sometimes we have losses. So at those times, you might be like, I want to quit. This is not too hard. I can’t get this. I don’t know, man. I don’t know what this what’s going on. I think I did everything perfectly. But in the workout, let those times that’s when your why kicks in.

That’s when you realize “No, you know what, I’m going to keep going. Because Allen said I could do this”. Yes, Allen said that you can learn to trade options. Okay? So, stick with me. Know your why, number one, number two, the method beats the hours. So when it comes to learning something like trading, right, your method will always beat the number of hours you put into something. So it’s not about you know, I gotta trade 10,000 hours like Malcolm Gladwell said in his book. If you do that, that’s great. You’ll turn into, you know, a world class expert in whatever thing you’re practicing, if the practice is perfect, right? It’s got to be perfect practice. But we’re not even trying to be world class. Right? We’re not trying to be one of the top 10 best Option Traders in the world. We’re just trying to be profitable. It doesn’t take that many hours to do that. But the method the way you do it does make a big difference.

Okay, so for example, let’s say there’s two people driving from Boston to New York City. Right? It doesn’t matter how skilled or how committed or smart the first driver is, if he’s driving a pickup truck, like a beat up old pickup truck, and the second guy is driving a Ferrari Well, driving number one is going to lose, right? Your method is the vehicle that will get you and become the engine to where you want to go. So with Ooptions, there are dozens of available methods to follow, right? There’s lots of experts, so called “experts”, quote, unquote, to learn from, this means that you want to spend a lot of time understanding who you’re learning from, what credibility they have, and how it fits with your learning and your trading style. Okay, not all trading is suited for all traders. Now, for me, you know, day trading, not for me learn that the hard way, you know, and passive trading, passive trading is not for everybody. If you don’t have patience, you’re going to get bored, and you’re going to wonder.

So the process or the strategy that you trade has to mesh with you and your temperament. You got to know yourself, and what trading style or method fits you best. Okay, that’s number two.  Number three, we want to apply the 8020 rule, because we want to get success faster, right, we want to get the results faster, we don’t want it to take forever. So you apply the 80/20 rule. And really, you should be applying the 8020 rule in just about everything, because 20% of the people in your life will lead to 80% of your happiness. If you have a business 20% of your customers will bring you 20% of your sales. And 20% of what you’re learning will give you 80% of your results. Okay, so you might have a list and say, Okay, I’m learning options. Alright, so I got to learn how to do my broker software, I got to learn how to do technical analysis and charting. I got to know how fundamental analysis works on stocks, I got to know how options work and puts and calls and buying options, and I got to know how selling option works. And I got to do this strategy and that strategy. Yes, you can learn all 17 in your lifetime and you won’t master it or get good at it.

Right? So when it comes to trading, it feels like there’s so much we don’t know, it’s so overwhelming. So it’s easy to jump around, you know, learning about a little this, watching that video. Oh, there’s another video. Okay, let me watch that over video over here. Oh, let me watch this guy over here. He’s talking about something Oh, he’s you know, it sounds like this is good over here. That it will only lead to wasted time, what you want to do is you want to focus on the one or two things that will drive the needle for what you want to achieve. And then you double down on them.

Right? You go all in? We Don’t dabble. You don’t want to dabble. Okay, we’re going to cover that later. But how do you do this? So you focus on one strategy first. That’s one strategy, you pick one that works makes most sense to you. That’s the only thing you’re going to work on. You trade it, you back test it, you do it over and over and over and over and over again, until it’s second nature. How many times? I don’t know – the more the better? Right. So while you’re doing that you ignore the noise. Okay, you don’t need to master 12 different chart indicators. You don’t need to trade the stocks with the highest implied volatility. You don’t need to watch the financial news every day. You don’t need to read every single marketing email sent to you by all the different services and want to be gurus. Cut out all the noise, focus on the 20% which is your trading plan.

Your watch list, your strategy, three things, trading plan, watch list strategy, that’s the 20% ignore everything else. Number four, learn by doing. We talked about this a little bit in the last one. But we’re this is a big one. Immersion going all in diving deep into what you’re going to learn is the best way to learn anything. And research shows that humans, okay, as a whole, when we’re trying to learn something. When we hear a lecture, we only remember about 5% from a lecture, right? When we read something we learned, we remember about 10%. 10% of what we read, okay? When we do when we hear like an audio visual, you know, maybe like a movie or something. 20% Maybe it’s a PowerPoint, and somebody’s explaining, that’s 20% we remember of that. When we see a demonstration, somebody’s actually doing it for us. 30% Remember that only 30%. When we’re in a group discussion when we’re talking about it with other people we remember 50%.

Okay, now we’re getting a little bit, you know, this is better now 50you still lose half of it. When you actually practice what you have learned. You remember 75% of it. So you learn something and immediately you turn around and you practice it and you do it that’s 75%. If you learn it immediately if you do it immediately, then that’s 90%-  so practicing but immediate practicing. Soon as you learn it, you turn around and you do it or you watch a demonstration, you turn around and you do it. That’s 90% remembering, right? So you got to do it learn by doing. The fastest way to learn is to get into the trenches and gain experience by making mistakes. Yep, making mistakes. So what do I mean by that? Well, doing 10 trades is better than doing two. Okay, 100 trades is better than doing 10. Now, do we use real money? No, we paper trade, we try to get into trouble, right? We put on trades that we know, hey, this might get me in trouble. So I’m going to have to adjust it, I’m gonna have to play with it, I’m gonna have to money management. So I’m going to learn the skills. The more the better. And the fastest way, and the best way to do more of them is back testing, you get yourself as a back testing software, man, it can cut years off your learning curve, you can take a strategy, and you can take a stock and you could back test years and years and years of trading that stock in an afternoon. You can’t do that with real money trading, you can’t do that with paper trading. Now, sure, it’s not exactly the same as if it’s real money.

But those are emotions, you can figure that out later, right now, in the beginning, you’re just learning the skills, right? You’re building confidence. Back testing is probably one of the best ways to do that. Number five, find a coach. So the people that perform at the highest levels, whether they’re business owners, whether they’re athletes, whether they’re musicians, whatever, they all have a coach, every single one of them. According to best selling author, Seth Godin, there are five reasons you might quit anything that you do five reasons, you might run out of time, and then you quit, you might run out of money, then you quit, you get scared of something doesn’t always go exactly, you want it right, you might quit. If you’re not serious about it, you’ll quit. If you lose interest, you can quit.

Having a coach allows you to see the blind spots that you couldn’t see by yourself, right? And the coach can guide you through the different obstacles. And the tough times that come when you’re learning anything new. Because everything is not going to be rosy and perfect, tough times are going to happen. So if you have somebody there that’s been through it, that knows what you’re doing and knows what they’re doing, they’ve been through it, they have done it before and they’re successful at it, they can help you and guide you through. And they can tell you what you did, right what you did wrong, you know, they can analyze it. That’s why coaching is such a big part of trading. And that’s why, you know, we have services where we give you the trades.

And then we also have coaching, where we actually do it with you, then you do it. And then you show me what you’ve done. And then we work on it together. The people who do that to people who are in our coaching programs, they get results, maybe 1015 times faster, you know, 10 times faster, 15 times faster than the people who are in our memberships. So I mean, there’s no shame in being a membership, you just need some trades, okay, fine. But if you really, really want to learn to do this yourself, you got to get into the coaching program. Okay. You know, one of the coolest things is when we have our credit spread Mastery program, you know, we’ve set it up right now, it’s a three month program, you get in, and you’re out in three months.

And you actually have learned and you’ve mastered the credit spread. And we do it so many times we go through it, we’re there, we’re putting the time in, we’re not dabbling, you know, we’re immersed in it. And we do the process over and over and over again. And you got everything like all the people all this stuff on this list, you have it, we make you do all of them. Right? I make you go through all this, this whole list we do we cover it all in the program plus a lot more. So within three months, people graduate from that program and they are ready to go. They’re rocking and rolling. They’re happy. Right? So I mean, it doesn’t take years and years and years to learn how to trade options. There are shortcuts if you want them. Okay, number 6, process over results. So doing the work is usually sometimes the hardest for some people, okay, actually doing the trades, and just doing it over and over and over again. A common mistake that people make when they’re trying to learn how to trade is they focus on their results. They focus on how much money they made, how much money they lost. That’s like the biggest thing in their mind. Oh, I made money. I’m doing good. I lost money. I’m doing bad. No, that’s not what you should be looking at.

Okay, it’s important to focus on your process versus your actual performance, because it’s hard to see any consistent results until you’ve put in enough time and done enough trading. That means in the beginning, you are going to lose on your trades. That happens to just about everybody. That’s fine because you’re learning. That’s part of it. Right? That’s why you should start with paper trading so you don’t lose money. But in the beginning, and I tell this to everybody, that goal is not to make money. I’ll say it again, the goal in trading in the beginning is not to make money, it is to become consistent. It is to be able to know and understand the process and the trading plan and say, “Look, this is how I put on a trade”, this is what I’m looking for, this is how I manage the trade. And then this is how I get out, either good or bad. Once you stabilize that, once you understand that, if you’re not making money, then we just need a couple of little tweaks here and there; and you’ll be consistently profitable, right? But we what we don’t want is we don’t want to do trades, we’re doing really well.

And then through Bah, we lose everything, and then we do good. And then we lose everything. And then we do good. And we don’t want the roller coaster ride. We want safe, stable, consistent. And if you’re not making money, when you get there, we can tweak a little things, and then boom, you’re off to the races, right? But if normally, if you do follow the plan, and you become consistent, the profits will take care of themselves. Now, Woody Allen said it, you know, it says 70% of success in life is just showing up. It might be even more than that. Just doing the work. Right? taking small steps doesn’t really sound sexy. But it’s been the proven path to follow. If you want to achieve anything in your life and in your trading. Number seven, writing down what you’re learning helps you remember.

So when you’re learning something, you’re going through one of our programs or the podcast, and you’re like, hey, I want to remember this, write that stuff down, take notes with your paper and pencil, not typing, you know, I’m old fashioned, don’t type it, just write it down. That’s gonna trigger between your hand and your brain, it just does something helps you remember, for all my trades, I write them down on paper. Now most of them are also then put on a spreadsheet or something for recording purposes. But I have them all on paper with notes. You know, I have my trading plan there as well. So I know exactly what I’m supposed to do. And in every trade, every trade every single time. So remember, write this stuff down. And then lastly, you got to teach it to others. So find somebody who’s interested in learning about options, or at least they’ll listen to, maybe they don’t care. But maybe you have a spouse or a child or whatever, that’ll do your favor and be like, hey, I’ll listen to you, okay. And you explain to them what you’re learning, you have to take these concepts that you’re learning, and you have to explain it to them so that they understand it. Because if you cannot explain something to a 12 year old, then you don’t know it enough yourself. You might think you do. But if you cannot explain it properly, you cannot answer their questions. You don’t know it enough. And that’s like the ultimate tell. Right? Do you know it? You got to be able to answer questions. And if it’s too complicated, and they don’t understand, then you got to go back to the drawing board, figure out more, learn more, come back, explain it to them. That’s when you really, really master something.

Okay, because I mean, you think about it, like some of the best teachers in your life. You know, they didn’t make stuff complicated. They took hard concepts, broke it down. Maybe they told with stories, maybe they use analogies, you know, they compared it to something else. Right? I heard somebody that we’re working with right now, I was explaining to him about trading options, you know, and I was like, hey, you know, there’s different ways people trade options are there the the people that say they want to go buy an option, and they want to make, you know, 100% overnight, and then there’s us where we’re looking to make, you know, five 10% a month. And he got it right away. You know, and he told me, I mean, he this is on him that he was really good at this. He was like, Yeah, well, you know what option selling is really like the Toyota Camry of trading. It’s like, you just get in and it just works and just turns he just runs in and runs and runs and is dependable and reliable and consistent. And you don’t have to worry about it. It’s just gonna work. And I was like, Cool. That’s really cool. I gotta write that one down. That’s a great way to explain it. I’m gonna steal that one. I’m gonna write that down. Yeah, you know, it’s like a very dependable car. It just works. So if you guys are interested in learning more about how to trade options, go man, join one of our programs, check us out OptionGenius.com. and we’d love to have you.


If you are on your trading journey, and if you want someone to talk to about it and say, hey, look, I’ve done this, I’m done this, what do I need to do next? Then reach out to us, send us an email and we’ll have somebody hop on the call with you, hop on the phone, walk you through it, ask you some questions, you know, find out where you are, what you’ve learned, and then we’ll be able to tell you like okay, you know what, we probably think you maybe need to study this more or maybe you need to go in this direction based on your results so far. So we do have that available now. Our team is growing and so we are able to now get on the phone with a handful of people and then you know, give them some suggestions, like, hey, what do I do next? Allen? Okay, well here let’s ask you some questions. You know, it takes about 10 minutes on the phone, not a big deal to reach out to us, email us, or look us up on Facebook or whatever. And we will send out a link, you can, you know, schedule a time to talk, and somebody will get on the phone and talk to you as well So, with that, I want to say, have a great time today or the rest of this week and the rest of this month or wherever you’re listening to this and trade with the odds in your favor.



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