SteadyOptions is an options trading forum where you can find solutions from top options traders. TRY IT FREE!

We’ve all been there… researching options strategies and unable to find the answers we’re looking for. SteadyOptions has your solution.

Can You Really Turn $12,415 Into $4M?


I came into excellent article by Peter Brandt on Drawdowns and Scammers. Peter explains why most long-term profitable traders spend the vast majority of their trading careers either in a drawdown or recovering from a drawdown. Any slick promoter who tells you different is not dealing from a full deck.  

Trading Drawdowns
 

Peter Brandt explains:

 

"There is a statistical concept known as the “underwater curve.” The underwater curve plots the time periods when new all-time high NAV levels are being registered (represented by “0” on an underwater curve) and the time periods in which drawdowns are either underway or in recovery back toward new all-time NAV levels.

Most successful long-term traders are underwater the majority of time. Welcome to trading!"

 

You are in a drawdown state 80% of the time and of that, you are in a severe drawdown state (greater than -20%) 67% of the time

 

Did you know that Warren Buffett has had multiple 30-50% drawdowns in his career? Yet he is considered one of the greatest investors of all times.

 

False claims by wolves in sheep’s clothing

 

Peter continues:

 

"Successful market speculation is one of the most challenging endeavors one can pursue. Yet, promoters of get-rich- quick-and-easy schemes run rampant in the email and internet worlds. If they are not registered with the SEC, FINRA or the CFTC/NFA or are not personally managing assets of investors they are free to make exaggerated claims. Their advertising is extremely appealing and enticing. Many of these training and trade signaling services claim to have REAL trading track records. But, as far as I am able to determine, none are willing to provide an attestation or audit letter from a national or regional auditing firm that has reconciled their IRS tax payments for trading profits, brokerage statements and bank deposits with their public claims."

 

This is so true. Here are some of the claims I have seen from those promoters:

  • I turned $12,415 Into $4,155,000 trading penny stocks.
  • 2,062% Weekly Option Gain.
  • Turn $3,000 Into $100,000 in 4 months.
  • I made 29,233% in 12 months trading high flying Internet stocks.
  • We averaged 127.16% Per Month trading credit spreads.
  • We guarantee that our options trading strategies will make you profitable every month.
  • 99% of my recent 326 stock picks have been winners.
  • Trading $150,000 into $650,000 in 8 months.
  • How Jack turned $250 into $16,000 in Just One Month.
  • +9,651.04% day trading return since Jan. 4 2016.

 

Of course none of them has ever provided any proof of those returns. As Bloomberg article correctly concluded, their self-promotional strategies have made them richer than trading ever did

 

Some of those guys claim they live in mansions worth tens of millions, trade tens of millions in their personal account, but at the same time sell trading advisories for $50-100/month. Does it make sense to you? Many times they specifically mention (in fine print) that their performance based on "HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS". Does it mean anything when they don't actually trade?

 

Red flags to Watch in Alert Services

 

Moneyshow listed 10 Red Flags to Watch in an Options Alert Service. Here are some of them:

  • The service doesn’t have any losing trades.
  • The service won’t show you their closed trades.
  • The trades have huge risk.
  • The service inflates their ROI numbers.
  • No detailed track record is posted.
  • The performance is not based on real trades.

Here is another HUGE red flag:

If the promoter keeps bragging that he lives in a multi million mansion, drives a  Lamborghini and has a private jet, run away. Really successful traders are modest and humble. They don't need all this BS.

 

There are also a lot of ways to inflate your track record numbers, as I described in my article Performance Reporting: The Myths And The Reality. Some of them include:

  • Basing performance on "Maximum profit potential".
  • Calculating gains based on cash and not on margin
  • Presenting "Cumulative return".
  • Holding losing positions indefinitely.
  • Resetting past returns after a large drawdown.

And more.

 

Those who want to find out more details about some of those scammers, I highly recommend reading real and objective reviews by Emmett Moore from tradingschools.org. Emmett also describes how some of them game the system and make their profits look real. Fascinating read, highly recommended. 


SteadyOptions lists all its trades on our performance page, winners and losers. The details of all trades are available on the forum with screenshots of our fills and can be verified with historical prices.
 

Van Tharp says successful trading/investing is 60% psychology...only 60%? Humans desperately want to believe there is a way to make money with no or little risk. That’s why Bernie Madoff existed, and it will never change.

 

Best luck with your investments.

 

Related articles:
Can you double your account every six months?
How to Calculate ROI in Options Trading
Performance Reporting: The Myths and The Reality
Why Retail Investors Lose Money In The Stock Market
Are You Ready For The Learning Curve?
Are You EMOTIONALLY Ready To Lose?

Trading Drawdowns by Peter Brandt

Winning Trades and Losing Trades by Peter Brandt

 

Want to learn how to trade successfully while reducing the risk? 

 

Start Your Free Trial

 

 

What Is SteadyOptions?

Full Trading Plan

Complete Portfolio Approach

Diversified Options Strategies

Exclusive Community Forum

Steady And Consistent Gains

High Quality Education

Risk Management, Portfolio Size

Performance based on real fills

Try It Free

Non-directional Options Strategies

10-15 trade Ideas Per Month

Targets 5-7% Monthly Net Return

Visit our Education Center

Recent Articles

Articles

  • How to Trade Cryptocurrency: A Guide for Beginners

    Trading is a core economic concept that includes the purchase and sale of assets, be it products or services, where the buyer compensates the price to the seller. In other circumstances, trading partners may want to exchange goods and other services.

    By Kim,

    • 0 comments
    • 219 views
  • The Lessons in Business We Can Apply to Investing

    While running a business and investing are two very different things, there are a number of parallels that apply to both. If you are looking to start trading and you are running a business, or vice-versa, there are some lessons that you can carry from one to the other.

    By Kim,

    • 0 comments
    • 453 views
  • 3 Methods To Invest as a Self-Employed

    As we all think about investing as a way to keep ourselves financially afloat, there is one group of people that the whole idea of trading and investing may seem more of a risk than normal. Self-employed people, who have to run their own business, trade as themselves, and essentially live a feast or famine lifestyle, could find themselves looking to invest or start trading but fall at the first hurdle because they do not have enough money or they are not able to put up with the risk. 

    By Kim,

    • 0 comments
    • 458 views
  • Steady PutWrite 2021 Year In Review

    Steady PutWrite (SPW) launched in early 2019, so we now have close to three years of performance to evaluate on both an absolute basis and relative to the strategy’s benchmark, PUTW (WisdomTree CBOE S&P 500 PutWrite Strategy Fund). 

    By Jesse,

    • 0 comments
    • 488 views
  • SteadyOptions 2021 Year In Review

    2021 marks our 10th year as a public trading service. It was our best year since inception. We closed 192 winners out of 270 trades (71.1% winning ratio). Our model portfolio produced 201.0% compounded gain on the whole account based on 10% allocation per trade. We had only one losing month in 2021. 

    By Kim,

    • 0 comments
    • 1,226 views
  • Results of Trading Industry Survey

    Earlier today I distributed a press release with the results from the Trading Industry Survey we conducted in November. First off, I want to thank all of you who took the time to complete the survey. I greatly appreciate your participation and, as you’ll soon see, the results were intriguing.

    By Jared Tendler,

    • 0 comments
    • 1,474 views
  • Questions to Ask Yourself Before You Start Investing

    Everyone has heard the success stories of people making tons of money from investments, retiring early, and living a life of luxury. But, before you start tying up all your cash in investments, it is crucial to understand more about what is involved.

    By Kim,

    • 0 comments
    • 1,617 views
  • How To Use Tech To Improve Your Stock Trading

    Technology is undoubtedly helpful in many aspects, and stock trading is no exception. Over the years, the stock trading market has experienced improvements as a result of leveraging technology. For instance, stock traders can have faster access to more comprehensive data to help them make a more informed decision.

    By Kim,

    • 0 comments
    • 1,692 views
  • Exploiting Earnings Associated Rising Volatility

    It was brought to my attention that Seeking Alpha now restricts the number of articles people can read for free, so I will reprint few of the key articles I wrote for SA. This one was my fist article, written in 2011, and it gives an introduction of the earnings straddle strategy that we have been using for the last 10 years with great success.

    By Kim,

    • 0 comments
    • 1,966 views
  • Why And How To Trade Objectively And Keep Your Emotions In Check

    Trading on the stock market is a serious profession. Individuals can make a very lucrative return whether trading professionally or personally. To successfully trade on the stock market it requires years of dedication, practice and thorough market understanding.

    By Kim,

    • 0 comments
    • 2,356 views

  Report Article

We want to hear from you!


There are no comments to display.



Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account. It's easy and free!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now

Options Trading Blogs Expertido