Successful Trading Series, The Early Days Sunday January 8th 12:15 PM Posted in: Trading Tips Start Trading As we approach our 20th anniversary of Options Intelligence (2018) we need to do a better job of making our customers more successful traders. When one enters this field of option trading, they often have hopes of striking it rich, what they do not realize is that every individual option trader is against them with a washout rate of 90+%. Most of the traders losses stem from psychology, poor money management, trading too often, and chasing "market gurus". Everyone looks for the "silver bullet"... What is going to make me rich? I understand this concept from my own experiences. Back in 1994 I began trading mutual funds and quickly found that I was not going to get wealthy on that slow wagon. I ventured into trading individual stocks, Dell and Compaq to name a few. I was still in the Coast Guard at this time and could not dedicate my full attention to trading stocks. At points I made a few dollars but nothing fulfilling. My career in the Coast Guard was primary but the burning desire to trade remained. And then, came new knowledge of the option market. I asked my wife to purchase me a few option trading books in 1995. I as many of you, I said to myself I could do this with ease. This was December and all the talking heads were giving their picks for the New Year. Feeling very confident in my new found skills I pumped in the only $5,000 my wife and I had. Within days I quickly discovered how quick one can blow up an account. I was devastated, I had lost all the money we had. Just like any other trading addict would do, I went to the bank and took a $5,000 draw on my credit card to get back in the game. I studied harder and learned there is more to trading for a living than following "talking heads". I began to make successful winning trades using stock splits. I explained to my uncle how and sent $4,000 and asked me to do the same for him. I turned his money into $10,000 within two months and then flew him out to Seattle and showed him exactly how I did it. Armed with the same knowledge, my uncle, went back home and quickly blew up his account! How could this happen? Well, he used far too many indicators for charting and listening to every "guru" causing him to confuse himself. Does this sound familiar to any of you? This is one of the many reasons people lose money in this market. The trick is to look inward and find what vice is causing you to seek out the "silver bullet". This has led me up through the early years to the inception of Options-Intelligence. I will cover more of the story next week as we begin to get into more of the meat and potatoes of trading.