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#682 - Guidepost First, Pinpoint Second: Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about guidepost first, pinpoint second. And this is a concept that I’ve been really kind of leaning on the last couple of...

#682 - Guidepost First, Pinpoint Second: Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about guidepost first, pinpoint second. And this is a concept that I’ve been really kind of leaning on the last couple of...

A partire dalThe "Daily Call" From Option Alpha


#682 - Guidepost First, Pinpoint Second: Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about guidepost first, pinpoint second. And this is a concept that I’ve been really kind of leaning on the last couple of...

A partire dalThe "Daily Call" From Option Alpha

valutazioni:
Lunghezza:
4 minuti
Pubblicato:
Aug 4, 2019
Formato:
Episodio podcast

Descrizione

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about guidepost first, pinpoint second. And this is a concept that I’ve been really kind of leaning on the last couple of months as I’ve been teaching and talking and doing webinars and conversing with people, this idea that I think a lot of people come into the options trading business and they’re looking for an exact, like pinpointed exact thing that they should be doing, but the problem with options trading in general is that there’s no unicorn strategy. There’s no one strategy that is the universal best strategy in all scenarios, in all cases, in all situations and best for your account. And so, what they’re coming in and looking for is they’re looking for me to put a pinpoint on a map and they’re so far from that pinpoint that they can’t even see it. It’s not even registered in their time horizon. And so, what I’ve been trying to tell people is – Set a guidepost first, so things that we should be doing first, very simple guidepost, small position sizes, right? Now, the actual exact position size for every little individual contract that you trade and how it relates to your portfolio? That can be secondary once you just get the big rocks in place. Set the main guidepost first. Small position size under 5%. Great. Get that down first, then you can do some pinpointing accuracy once you get further down the road. Set a big guidepost in place for things like selling option premium even when there’s low implied volatility. Just do that, right? Set that one guidepost, then start working your way towards setting pinpoints later on. Things like, “Okay. Do I sell at 50 days versus 40 days?” is not a question you should be asking right out of the gate. You should be trying to get the big rocks in place, trying to focus your attention, move down the road, make some progress and as you go, you’ll start converging closer and closer to these pinpoints, these actual mechanics of what you should be doing. But the problem is like I said, a lot of people are doing pinpoint first, guidepost second. They’re trying to focus in so, so much and I know the anticipation, the excitement, the engagement, I know why they’re doing it, but they have the wrong perspective. They’re so micro-focused on one particular way to trade and then when I start saying things like, “Well, that would work, but only in that scenario.” then they start losing and they lose their cool or they lose their focus or they just flat out quit. Again, guidepost first. Set a far distant guidepost, just something to work towards, then as you get closer, set some pinpoints and that is a better thought process and methodology for actually learning this stuff than doing the opposite. Hopefully this helps out. As always, if you guys have any questions, let us know and until next time, happy trading.
Pubblicato:
Aug 4, 2019
Formato:
Episodio podcast