Why 90% of traders lose money my name is David Jaffee from BestStockStrategy.com I
earn around a million dollars a year by trading options and I teach my students
how to make successful and profitable trade so they can consistently earn
money in the stock market so I saw this video from Sky View Traders and I
actually think it's complete bullshit because the reality is that I believe
that 100% of traders who trade penny stocks for day trading or
buy options or sell futures or engage in forex I think that they lose money like
100% of them I've never met a successful day trader or anyone who uses
technical analysis etc and you know I should have a pretty substantial
pedigree like I graduated from an Ivy League university with a 3.8 GPA I
worked as a Wall Street investment banker and completed $5 billion - $10 billion
dollars worth of transactions and I did that for five years actually left as a
Vice President in Investment Banking and I'm actually a super successful trader
who post my full trading statements and a screen recordings that show my entire
transaction history but if you don't believe me and you wanna think I'm
bullshitting then that's completely cool like I respect your opinion and I
understand that not everyone is going to agree with me and I'm not trying to
change anyone's opinion I'm just telling you what I believe at this specific
moment and what I believe is that not 90% of traders lose money I believe that
a hundred percent of traders lose money as long as they are not following the
strategy that we teach and the strategy that we teach is you need to sell option
premium if you want to have a long-term chance of being a successful trader in
the stock market and the reason is it's just probability of profits right if you
buy options then you have a 30% probability of being profitable so yeah
three out of ten times you're going to earn I don't know 50 or 100 percent of
an option but the reality is that people tend to be greedy they tend to you know
they give in to that agree they tend to lose more than they win
when you have something that has a 30% probability of profit the more
occurrences and the more time we make that trade the more money you're gonna
lose so when you day trade the probability that are gonna make money on
any one specific trade is probably around forty or a maximum of 45 percent
manufacturing commissions when you use technical analysis which you're
essentially day trading you're probably going to be profitable on I don't know
42 to 45 percent of your trades maybe 40 to 45 percent of your trades so you
might misattribute the winning trades that you have to actually skill when the
reality is that they're just purely luck and that's part of the expected return
so for example you might win forty to forty five percent of your trades and
then you might think that it's that is skill and that you're trying to develop
a system to increase the probability to around 55 or 60 percent but the reality
is that you are not you're going to keep your win percentage at forty to forty
five percent and the more trades that you make the more the higher probability
is that you're gonna lose and you know you might have months where you make a
lot of money just like if I flip a coin a thousand times there are going to be
ten heads in a row and there's gonna be a time where I get like ten tails in a
row or maybe not ten but it's definitely gonna be if I flip a coin a thousand
times there's definitely gonna be a few occurrences of six heads in a row six
tails in a row I mean that's just statistical probability that you're
going to have those strings and that doesn't mean that I am any better at
flipping coins and having it land on heads it's just the probability of
profit so the point that I'm making is the reason why 100 percent of traders
don't make money is because they are not following our statistical probability
and the probability of profit which tells you that the only way that you can
make money consistently in the stock market as a trader is by selling option
premium all of these people who try to sell you a product and they tell you to
use technical analysis and look at charts and look at patterns and buy
options they're complete scam artists so like Jason Brown, Jason Bond
Tim Sykes they're not profitable traders are just
selling you a bullshit product so the only way to make money consistently in the market is
by selling option premium and the reason why a hundred percent of the traders do
not make money is because the probability of profit dictates that the
longer you trade something that has a probability profit of thirty to forty
percent the higher the chances are that you are going to lose all your money
this is David Jaffee from BestStockStrategy.com Please like comment share and subscribe
this vide to this video into this channel leave a comment below anyone who
leaves a comment I do respond to it and I'd be happy to help you you can go to
BestStockStrategy.com enter in their email and receive $400 dollars worth of free training and
if you have any questions let me know I'm sorry for the baby noise in the
background alright my childhood just got back and he's a toddler and he's
screaming so I apologize for that but hopefully you've been able to get some
valuable information and out of this video if you have any questions I'm here
to help you thanks again
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