Spectacular returns from trading options, is simply a matter of subscribing to a good newsletter, trade alert service or options education program. Right?
All you really need is a new trading system, computer program, super cool charting application algorithm who's what's it thingamagiggee. Right?
Sure...
Buy that stuff and then come see me 'cause there's a great investment opportunity in some submerged swamp land I think you'll be interested in...
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Mark Sebastian dropped by to talk to us about reality. We all want the quick, the easy, and consistent trading returns. Just 5% per month, right? It's a great idea, but is it realistic? That's what really counts.
Reality is where we build our fortunes. Day dreams are where we joust with windmills. It's time that we shatter some expectations and get real with what trading is all about. Mark Sebastian and I do that in this presentation.
I have also updated an article that I wrote some years back on the same subject, which I invite you to re-visit. It is available on our site - Realistic Trading Expectations.
Christopher Smith
TheOptionClub.com
Looks like you gave Mark Sebastian a free one hour commercial to promote himself and his mentoring program and to run down all of his competitors, giving them no opportunity to respond. Is that what optionclub is all about?
Not only did I provide Mark Sebastian an hour, but I provide many of his competitors an hour or more to speak to us. You might notice that we have guest speakers here routinely. Generally, the quid pro quo for providing us with the benefit of their time is that at the end of the presentation they may highlight their product or service. We try to get different speakers addressing the same or similar topics to provide a diversity of experience and opinion. So, yes, I suppose that's what TheOptionClub.com is all about.
Christopher Smith
TheOptionClub.com
I thought the presentation was good: I enjoyed Mark's sense of humor and I especially enjoyed how he went after the claims of many of the trade vendors. I have been trading for a long time and I know how hard it is to consistently make money. Was it a bit self-serving? Sure, but that is OK and I expect any educator to be promoting something (Website, Mentoring Service, Book, Newsletter, etc.) in exchange for a few good free ideas.
Whenever I read a ridiculous claim from a trading service I think about what I would do if I ever stumbled across the Holy Grail of trading which allowed me to generate ridiculous profits consistently. Would I offer to sell these secrets to strangers for a few thousand dollars? No, I would make millions in the market year after year! I thought Mark did a good job of letting investors know that if it were easy to make money trading then everyone would be rich and that is not how it works in the real world.
Mark Sebastian is one of the most serious educators about trading options.
Even if you don' t follow his payed courses you can find a LOT of suggestions and wisdom in his blog.
Not empty promises, but a scientific and serious approach to options trading.
Thanks Mark.
Thanks Christoper.
Paolo
[...] any means) to earn 20% in one year. Mark, who blogs at option pit recently held a webinar through the option club.com and suggested that 13% is a reasonable annual expectation. So who is to be [...]
I feel compelled to defend good non-directional mentors a bit (Sheridan in particular). I am almost certain the quote about "grinding out 5% to 15%" is a quote from D. Sheridan. I don't believe that is a false claim in the sense that Mark Sebastian is claiming it is. Mark worked for or with Sheridan and should be clear about this.
The 5% - 15% return, in the context of that article, is only a % yield on margin per position and is realistic. However you obviously never margin your entire account balance. After scoffing at the claim, as predicted by the quote, Mark continues on to debunk the claim by completely misrepresenting it as a claim that promises 5% - 15% returns on your entire trading account.
The expiration graphs of the non-directional postions taught by Sheridan (and probably Mark Sebastian as well) present the possibility of VERY HIGH yields at expiration. These trades are a lot of work and take serious amounts of time learn and work on through various price and volatility climates. I've been at it for 2.5 years. But still, the most difficult part for me is walking at away at only 5% when 150% appears to be sitting right there just 2-3 weeks away.
Incidentally, Sheridan (since I am on the topic I guess) demonstrated 12 months of butterfly trades that when adjusted as required yielded a 100+% annualized return in a paper account (including losses). Although he presented one harrowing caveat: had it been in a real account you would need to take out 30% for slippage.
I was disappointed by this particular debunking - seemed unnecessary. I liked everything else about the presentation though.
Brent