In this post, we’re going to talk about some cool stuff. We will focus on why do some people think that trading options is bad.
We’ll try to make it as simple and fun as possible. I’m going to start looking at things that are good and bad.
Here’s a draw of pizza. Some people are going to look at this and say:
Man, this is good, and it’s yummy.
They like this kind of stuff. So you have one group of people that say it’s delicious. And you have another group of people that are going to say this is bad.
Just like in life, when you look at things that are good and bad, you’ll probably have had some experience in one area or the other. You’ll be on one side or the other. And if you have allergies to pepper, then you’re going to say this is bad for me. I don’t like it, and you’ll be in this area (BAD).
If you’ve enjoyed pizza in the past and you’ve tried it, you’ll probably say it’s delicious (GOOD AREA).
No matter where you fit, you’ll be on one side or the other.
Some people will overlay. They think it’s OKAY. They’ve tested it, they’ve tried it, and now they can say that it’s somewhere in the middle for them.
This works the same way with option trading. If we convert this pizza into trading options, people make decisions a little bit different than they do about pizza.
How do people decide to eat pizza?
Well, it could be based on taste or price.
There are some questions like:
- Is it expensive?
- Is it affordable?
For many people, it’s affordable enough, so that is usually not as big of an issue. But the taste is one of the big things. It could be quality, their preference, their allergies, all these different things.
They have an idea of what’s good and what’s bad. If we look at options that make up and that composition is different. It’s much different because it’s not so much taste. The makeup when it comes to trading options all of a sudden, it could be your past success.
This is much more difficult to gauge because everybody trades options a lot differently.
If your success was probably good and you’re making money, you’ll probably be in a good area.
That’s one way to do it.
Did you make a lot of money? It could be a lot of money then it’s also good.
On the other side, if you had some success, but not a lot of money or no success, you will be in the BAD section. Or even a colossal failure, then you’ll probably be in a bad category as well.
This is why I find a lot of people stem into one area or another in trading options, whether one is good or bad. Some people don’t even try things. They’ve read things, and when they read things, it changes their mind in their mind shift. They have a warped view of things, and they never really tested things.
They’ve never even tried it or put on a trade in options. And remember that there are people out there when they taste sushi the first time it might not have been good. It might have been bad, actually. And I’ve had this with a friend who tried sushi before, and he didn’t like it the first time. The second time he tried it maybe at a different place, a different restaurant and he loved it.
Then it was good.
Sometimes you’ll get one or the other. Some people are on the good side, and then they change to the bad. Sometimes from the bad side, they switch to the good. But it’s only after a handful of times by (3rd and 4th time) where you can figure out what type of pizza you like and don’t like.
With options, it’s not much different. If you’ve only tried trading options one or two times and you had bad success, you’ll probably be in the bad section.
If you’ve tried it one or two times and you had success, you liked it, but you might end up not liking some things. In that case, you could be in a mix. You could be in the OKAY section, but maybe not as good still.
Pro Tip: You need to try things a handful of times to figure out where you’re at to make a firm decision.
A lot of people say it’s bad. It’s terrible because they probably did not trade a lot. They traded small or minimally. Maybe there are no trades at all.
Perhaps there’s no success, or maybe they’re reading a lot of negative comments about that. If that is the case, it’s just in their mind; they create a negative view. And that’s why all of a sudden is bad.
The thing is if I’ve never tasted pizza before and I just read about it, that is going to wrap my view.
I think the critical part is to have some confidence. Yes, of course, it takes time to build some confidence.
You need to start a little bit at a time. As your confidence level grows, you put on a few more trades.
And it continues to expand. Put on a few more trades; confidence grows, and all of a sudden, you’ll say this seems like something that could be worthwhile. And it could be something that I could use for the future to make some consistent income from.
If you have very little confidence and insight in option trading, you’ll be in this bracket where you think option trading is bad.
That’s a simple explanation behind it, and I hope that gives you some thoughts and ideas. If right now, you think option trading is bad because you’ve had some losses is that you need to build up your confidence.
That’s what it stems to, and you have to take time to build things incrementally. Put on small trades to build your confidence up a little bit at a time.
As you do that, your confidence will grow. And as your confidence will grow, you can put on bigger trades and make more money. That will slowly go up with time.
If you’re on one side of the bracket thinking that this is bad or on the other side looking at that, this is good to see it from a different perspective at how people approach it.
It’s like looking at any tool. Can a hammer be a useful tool or a bad tool? It can be a great tool if you want to build something. But it can also be a nasty tool if you hit your thumb with it.
Shift your mindset to think about what are the positives behind it and how can you use this tool to your advantage to improve and grow your life.
Don’t look at things to negatively see what is it that you can get from it positively. In the end, you can also use it to improve the world around you.
