Trading: Are You Making Bad Decisions & Losing Money?

You are not special. Bad decisions lead
to bad outcomes. David Jaffee with and I want to
reiterate a very important point that if you make bad decisions and you take
unnecessary risks then that will oftentimes lead to bad outcomes the way
that this happens in the way that this applies to trading is I frequently see
students trade too many contracts and trade way too often trade small trade
often is one of tastytrade’s core models and while I definitely agree that it’s
important to trade small the trade often is something that I vehement ly disagree
with I think that this is a really poor advice that tastytrade doles out and
recommends to their viewers by telling them to trade often the reality is that
not all trade opportunities are created the same if you have an opportunity that
you perceive to be an A or an A+ opportunity you should allocate more of
your capital to that opportunity than you should to a trade that you only
perceive as like a C+ or a B – now tasty trade is going to tell you that you
should sort these trades based upon implied volatility because your
perception of market mispricing is and whether something is oversold or or or
overbought is incorrect but my experience and I make a few thousand
trades every single year and my returns are substantially better than tasty
trade while also reducing and mitigating any draw downs my returns show that when
you’re patient and extremely disciplined you’re able to mitigate and reduce your
risk while at the same time substantially improving your returns
because you should never enter a trade with the belief or with
the desire to ever manage or roll that position and that’s what frequently
happens when people enter straddles or strangles or iron condors or they sell
iron butterflies on ETFs typically speaking you should never enter a trade
with the goal or the intention of later managing that trade because 98% of the
people who trade options are not full-time options traders they’re
working they’re hustling they’re doing real estate they’re working a
nine-to-five job where they’re working nine to eight nobody wants to be in a
situation where they make a trade and only only to have to manage and roll
that position a few days later rolling and managing challenging challenged
positions is extremely stressful and it also takes up a lot of your time so it’s
very time consuming so make sure that in this this type of advice applies to
everything that you do in life you should never take too much risk and you
should never make bad decisions because bad decisions lead to bad outcomes you
are not special if you take too much risk if you try to make quick and easy
money if you try to cheat the system you’re only going to end up cheating
yourself so again make sure that you make good decisions because if you make
bad decisions it leads to bad outcomes David Jaffee with you can go to and enter in your email address
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20 thoughts on “Trading: Are You Making Bad Decisions & Losing Money?”

  1. So I’ve rolled a long credit spread on $nflx, and the put I sold is now in the money. I’m afraid it isn’t worth rolling out again and will have to take a loss. For the future when would you suggest is a good time to cut losses on a credit spread?

  2. David great advice again but I can't help but notice your contradictions you say don't trade often then you say you make a few thousand trades a year? doesn't that mean you are making multiple trades a day and is that not considered trading often I would appreciate further elaboration on this point.


  3. Hello my friend, David. 🖐️ I hope your having a great day . Your videos are awesome 💪. I make videos on how to make a great amount of money for free as well. We should collaborate sometime 👍. It would be epic.

  4. Hey Dave do I need to have a margin account to trade your strategy? Also I have just a 6k account size is that surffentiant? Your absolutely right about day trading it leads to no where even with two good back tested setups. I would like to start learning more about options.

  5. Hi I agree that we shouldn't trade too 'often'. However, everyone has different threshold and it can be very subjective how 'often' is 'often'. Can you advise further what should be the appropriate number of trades per month for a 50k account?

  6. Mr. Jaffee you are too funny man!
    "You are not special" 1 second in lol.
    You should start a depression video like that. Much love sir.

  7. When you determine where to sell your Puts, do you use support or moving averages (for example) at all in your decision making? Or is that mostly bs lol

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