Though I often use other means to address my students and many followers from my numerous other sites and means, I will make a simple case here as to WHY ONE ALWAYS SHOULD BE ACTIVELY INVOLVED in one’s own life, in every way, everyday!
What you see is a simple study that a friend, Tom Sosnuff had his team complete.Tom founded tastytrade, a free live daily financial education network and tastyworks, his newly formed brokerage company with super friendly fees. Both were started to ENABLE & EMPOWER EVERYONE. In other words, to “level the playing field” for all people, rich or poor! Actually bolth EMPOWER & ENABLE TO GIVE “the average guy” FAR MORE POWER & SMARTS over any “Wall Streeter” or so called “Financial Expert”.
Tom now does what I did for decades through my weekly newspaper column “Learning To Use Money”, but then I did not have the same tools as today (LIVE INTERNET ABILITY, ease of usage, and of course, now most (though sadly not all) HAVE INTERNET ACCESS!
Getting back to the chart above and WHY IT PAYS TO “BE ACTIVE” rather than “Passively Watching” (or ignoring) ; either way DOING NOTHING and GIVING AWAY One’s Financial Freedom and forever “needing to WORK for a living” rather than letting your money WORK FOR YOU, thus freeing you forever!
So rather than trying to understand what everything in the charts mean, just simply look at the 4 columns: “Exp.”in both of the columns stands for “Expire” (simply after placing a trade, and waiting for the time to expire, (just as your insurance policy expires each year on your house or car for example). “50%” for both of those columns means “when 50% of the profit is reached (versus 100% of the profit possible) close (end) that “trade”.
To keep it simple, look at the “Win Rate” line. Note 78% (win rate) under the “Short Put Spread” for the “Exp.” versus the “86% ” Win Rate when the trade is closed at 50%. HUGE INCREASE IN %! Now compare the “Exp. and “50%” under the “Short Call Spread”. Note “58% versus “70%”, another HUGE IMPROVEMENT when Closing At 50%!
Move down to the “Avg. P/L per Day” line (Average Profit or Loss each day). Compare the columns again. $0.75 looks terrible compared to “44.50 certainly and what about the “Call columns”: LOSE $0.25 per day (lose 25 cents each day) versus GAIN (Grow) $1.50 per day = HUGE DIFFERENCE when “doing something one way LOSES CONSTANTLY while doing it “just a little bit differently PROFITS YOU EACH & EVERY DAY!!!!
In one case (the “let it Expire way”) YOU Either GAIN LITTLE &and CAN ALWAYS LOSE, and BEING ACTIVE (nothing crazy, but actually FAR LESS “Risk”) PAYS BIG TIME!!!!
— Now what is studied here is simply just the tip of the iceberg, meaning that tiny amounts and numbers are used. Imagine If these numbers were MORE “EVERYDAY AMOUNTS” (more realistic for everyone); these “$4.50s” would be $40 and $400 instead! (and remember, all this is “about the little guy stuff”, NOT the “Billionaire’s Types of Money”!
Imagine WHAT MOST PEOPLE DO (well over 75% of the population with MANY More Not Doing or HAVING ANYTHING At All “working for their own good”)! —- Is it any wonder that VERY FEW PEOPLE EVER GROW “Beyond Working For A Living” or “Being Free of MONEY STRESS & NEEDINESS!!!!!!!
————an aside: today I heard a FAMED “financial expert” John Vogel state to ALL= Vogel said “though I might look at the overall markets once a day or week, I NEVER LOOK AT MY HOLDINGS other than Once A Year”!!!!!!!!!!!!!!!!!! — Oh, My Gosh = An Idiot That CONTROLS & RUNS & OWNS very likely SOME and MAYBE “MUCH” of YOUR MONEY as I write. His VANGUARD company “manages” (if you want to call “looking once a year and DOING NOTHING ” “as managing”)!!!!!!!!!!!!!
Guess It is NO WONDER that Karen & I have been FINANCIALLY FREE (independent from “needing to work for money” for many decades now, versus most of you who blindly FOLLOW THE LEADER or “your company’s recommendations” or “doing what your parents” or friends do, etc. — You Stay “Owned & Controlled”; Us Few Who “LEARN, KNOW & DO” ARE FREE, Stress Free, & in short: Happy, Healthy & Wise (with ;lot’s of JOY thrown in)!
Ah, all this “is what I teach” and How We Live & Grow Each & Every Day, FOREVER! And the sad thing for you is “YOU NEVER BOTHER (DARE) ASK”!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!