While drinking my morning coffee today, I was
reading through a few emails from readers, and I
thought this was interesting to share.
Read this email and my thoughts will follow.
Josh, thanks for your e-mails – I enjoy reading
I’m always amazed at how much people rely on the
“experts” such as doctors, lawyers, etc.
You’re right in today’s world; the little guy has
a better chance than ever before.
I still have a full-time job / will be winding
down over the next few years – and want to learn
gradually the skills needed for options trading. I
have approx $50k in “risk capital.”
I’m hoping to generate 10k in income off of this
mainly selling premium through spreads / naked
puts / some covered calls.
Do you think that this is reasonable?
Thank you again
Thanks for the kind words and glad you enjoy what
I have to provide.
I don’t want you or anyone else to misunderstand
my belief on professionals.
We all need to be a professional at something to
create value in the economy and to others.
If I need legal help or need major surgery, 100%
I’m going to a professional and the best.
Those professions have a lot of expertise and
knowledge. There’s so much more you need to know
than investing your money and making money from
When it comes to managing your money and creating
realistic returns, I don’t believe that gap of
knowledge and tools needed is that far between
with doing it yourself and a professional.
You also have to understand the restrictions
financial professionals have, it’s not in their
best interest to try to do any better than a
benchmark because or the risk and work involved.
It’s not all their fault, it a combination of
legalisation and people’s lack of knowledge.
That is why I stopped managing money; I was
stressing myself out more than what it was worth.
I’m better off doing it myself and teaching you
and others how to do it.
It has allowed me to have more freedom and
enjoyment with other people achieving the success
they didn’t think they could do themselves.
Everyone needs a full-time gig that brings in that
It’s what you’re best at right now while you start
to learn, train and gain experience trading
options with being able to make mistakes and how
to deal with losing and winning trades.
I know it’s not fun, but it’s the discipline
I want you to steal this:
Discipline equals freedom in life.
Discipline equals moolah in investing.
Discipline creates consistency.
Money and freedom aren’t given; it’s earned
Do I think it’s possible to make 10k income a year
on a 50K account?
Sure, depends on your risk tolerance.
However, that is a 20% return.
To me, it seems a little unrealistic and from
experience not much of a cushion for mistakes or
just market randomness.
You want to approach this as a business and a
successful business keeps growing.
For this type of business, capital is essential.
Selling options do provide the opportunity to have
higher chances of success, but it’s just not that
There are times where it makes more sense to buy
spreads or other strategic approaches to managing
It’s an example of what you want, but no one cares
what you want nor does it mean it happen.
You’re forcing what you want without the consent
of the other party.
If you did that to another person, you’d be behind
It’s about having respect and understanding.
I know there’s concern with putting time and money
into something that has uncertainty and no
That’s everything in life, though, they’re
professionals who train every 4 years just for one
chance to win a gold medal.
When it comes to the markets, I don’t think you
need to be that elite, but I believe the right
knowledge, logic and discipline will create the
consistency that will result with taking money
from the market and keeping it.
Just like we can’t control other people, we can’t
control the market.
We live in a great world right now where you have
the option of doing it yourself or having someone
else do it.
Some people have sacrificed their lives for this
freedom of choice.
Be humble, respectful and focus on being
Win or lose; there’s more pride in trying than
sitting and wishing.
If you don’t want to look back at your life and
say I wish I would have taken the time to learn
this, then the foundation for creating the right
approach to trading options for consistency can be
To your wealth, freedom and options!