Do trading education scammers (99.99% of the "industry") ever feel guilty?

[Kim Klaiman]

And you still haven't addressed how members are supposed to get in on these same traders if they are already liquidity constrained by you.

The part that you missed (or just ignored) is where I said that SteadyOptions is not just about trade alerts, but about options education. And that means that once you learn the strategies, you don't need to replicate exactly the same trades. You can use different strikes, different expirations etc. This is why we have a discussion about all trades that we make.

If your goal is really to understand how the service works and see some examples, I would recommend the following posts:
Welcome to Steady Options
See What You AreMissing
Lessons From Q1 2016 Earnings Season
How We Nailed The Implied Volatility Game

But I assume this is not really your goal, is it?

 

[Gotcha]

The answer to your question is in one of your earlier posts:
"Ultimately, if you want to be a trader making a few thousand every day, you gotta be able to also lose a few thousand every day and not have this affect you one bit. If you can't see the mentor doing this live, and not having this affect him at all, not scaring him from putting on the next trade, then you quickly end up hitting a brick wall in regards to how much you can learn from him."

Do that with your money -- it's a free world. You can be the BSD on the block.
But if you try that with someone else's money, or if you purport to teach that to others for them to do it with their money, ...

Real live trading, with OPM, is no place for BSDs.
That is something you have to practice hard not to understand.

My point with that statement is that its easy to trade a 10k account well because you won't have the pressure you would as if its a 100k account and you need to make money to pay the bills. When you have a trading service and most of your income comes from subscriptions, then trading a 10k account is a different ballgame. Not saying its easy of course, but every single guy who does well in SIM will tell you it aint the real thing. Having hundreds of paying subscribers and trading a 10k account is almost like trading SIM.

 

[Kim Klaiman]

I have taken this from your website where you quote PnL for individual trades. The percentages go anywhere from -33% to +55%, but the portfolio value only changes by less then $100 to maybe $300. So clearly these percentages are based on the cost of the options. (ie. You pay $100 and make $50 on this, so its claimed as 50% P/L)

Clearly not.

First trade in 2017 made 17.7% and portfolio value changed from 10,000 to 10,177.
Second trade make 20% and portfolio value increased by $200.
50% gain = portfolio value increases by $500, compounded monthly.

 

[Gotcha]

But I assume this is not really your goal, is it?

That is correct. I have seen enough about options to see that its not the least bit easy, and can be down right dangerous in the wrong hands. But there are many ways to make small and consistent profits seem as if its just easy pickings that you replicate over and over again (until you go bust one day).

I see no reason why a guy would choose to educate rather than keep it all for himself. Trading is the one profession where those who truly know don't pass on any information to the next guy. I bet that given the choice of making 200k a year from trading vs. from education, 99% would choose just trading and have more time to themselves. So then you have to wonder why someone who can supposedly crank out stellar returns bothers to deal with hundreds of members day after day.

 

[Gotcha]

Clearly not.

First trade in 2017 made 17.7% and portfolio value changed from 10,000 to 10,177.
Second trade make 20% and portfolio value increased by $200.
50% gain = portfolio value increases by $500, compounded monthly.

View attachment 177745

Honestly, I don't understand your match. Why even list % return? Say the first trade made $177, end of story. I bet that doesn't sound glamorous enough, so this is why.

17.7% from a 10k porfolio is $1,770. I don't know what you're compounding monthly. You keep talking compounding, and then you state how you hit liquidity issues with even a 100k account. What is the point of compounding if your profits are only ever a few hundred dollars???

 

[Overnight]

...
First trade in 2017 made 17.7% and portfolio value changed from 10,000 to 10,177.
Second trade make 20% and portfolio value increased by $200.

10,000 to 10,177. Isn't that a 1.017% gain?

 

[Gotcha]

You are right, this is something you will never understand.

But you can ask the same question any hedge fund manager. If they are so good, why they select to make money from management fees and not trade their own accounts? Same applies to guys like Soros, right?

You're right in terms of fund managers. The money is in the fees. As the classic quote goes, where are the customer's yachts?

As for Soros, isn't he trading his own money?

When you talk huge funds, they are making what... 5%, 10% if luckly? Its only a few like Renessaince that can maybe get to 30-50% long term. Your 82% blows them all out of the water!!!! But of course, you have liquidity issues. Once again, a good reason to not quote a percentage when your 80% can only ever be based on a 10k account.

 

[tommcginnis]

Uh-ohhhhhh.

I've got to move on to other tasks but, I have to evince two principles that no one should be without ("a'round these 'ere parts...")

1) All trading results are net of commissions. No excuses. (No. Stop. No excuses.)
2) All trading results should enunciate clearly between trading [or 'position'] reward/risk and portfolio ROC. No excuses. (Don't go there. Just don't.)

Out.
G'night.

 

[Gotcha]

Because in trading percentage gain is the only thing that matters. Once you know that a trade made 20%, you can calculate how much does it impact your total account value, based on your allocation and account size. $177 gain tells you nothing.

Not so. With futures, average ticks per trade rules.

But if this is what you're going with, then once again, your 20% gain on one trade isn't a 20% gain in your account, so your math still sucks. I think you really mean a 20% gain on the option, but everyone knows this means nothing. Lots of people have options double in size, but it doesn't mean your account doubled in size since clearly, you aren't buying 10,000 options with every last dollar in your account.

Your insistence of percentages is just clouding the real dollar numbers.

 

[Kim Klaiman]

10,000 to 10,177. Isn't that a 1.017% gain?

No it is 1.77% gain on the whole account. 17.7% gain on single trade combined with 10% allocation per trades equals $177 gain on $1,000 trade, or 1.77% gain on the whole account (10,177/10,000).

More details: How To Calculate ROI In Options Trading