No better way to describe what we’re all about… « Earn While You Learn » is catchy, cliché maybe however this is the American way, down-to-earth, direct, efficient. OM has no credit for it. It is the path we have followed, with proven strategies we are now passing on, and we are grateful to our own coaches. Yet we decided NOT to reproduce the same model. We depersonalise the strategies. We take them for what they are and endeavour to make them accessible to all, in the interest of all. That’s not only the Community aspect, it is a ‘bottom-up » model. We’re all on the same boat. We pass on the knowledge on our trades, and we trade based on the same acquired knowledge, inviting candidates to trade quickly, to share and expand the network, the model and in a way the lifestyle, in other words, the business values.
A motto, a choice of words is always limiting. Another word we feel is adequate here is « craft » or « craftsmanship ». Improving the trades through practice and mentoring, with a constant feedback, satisfaction and even gratification, even if it requires work and dedication. This also means ‘syncing’ with the method, sometimes giving up on previous bad habits, and every day every week, going back to it until it becomes a second nature. Rome wasn’t built in one day but the support of the Community and the quality of the strategies gauge the rightfulness of the path to success. Rest assured, it is not such a long journey; it does not take months or years to trade successfully.
Let’s now review common misperceptions, false assumptions and other obstacles that generally slow down the beginner trader:
TRADING OPTIONS CAN BE AN ENDLESS JOURNEY
This is true. Options trading can sound overwhelming as there are thousands of different ways to approach the field with almost infinite theoretical developments. It is essential to focus on a few selected strategies that work to quickly build self confidence, with the minimum required amount of theory. « Aim & Shoot ». Some shoot way too quickly and end up paying dearly for training. Some others aim, aim, and aim again and never shoot… Trading is a craft so the dedicated trader will get better and better at it and having access to the right method from day one is a tremendous time saver.
TRADING CAN BE AN ENDLESS BATTLE
Ask yourself the right questions ? Are you meant to trade ? Are you ready for it ? It is a challenge but don’t make it an uphill battle! Trading against yourself, against your temperament, against your risk profile is a classic recipe for failure. At OM, we trust the main « bread & butter » strategies induce virtually no stress. They are monthly trades, with very strict guidelines and at most a few anticipable adjustments from entry to exit. Trading gets in your blood stream in a matter of a few months, allowing it to become a second nature. As a matter of fact, after 3 to 6 months, most traders already start diversifying into a broader portfolio of strategies (BB, M3, etc.). That said, some also then choose to delegate it to experienced traders yet confident they can trust the method and the mandated trader.
SO, HOW DO YOU « EARN WHILE YOU LEARN » ?
A bit of homework!
This is the standard mentoring stage to learn or refresh your memory with the Greeks, the main options strategies, as well as to prepare for the first trades. Group classes and personal coaching sessions are available but you can also decide to do your homework and join us for the strategy sessions.
The Options « Lego » game
Aim ! All strategies are basically made of simple to more complex combinations of the same « blocks » such as vertical spreads (buy and sell calls or puts at different strikes, same expiration). The main strategies are all built on these combinations. The reason why we have chosen our particular construction blocks is essential in the understanding of the behaviour of the overall strategy (each block plays a part of the edifice, nothing is left to chance), hence it helps building the right intuition and anticipation of possible adjustments during the life of the trade.
This 2nd stage is always conducted on one to one sessions with a coach on Skype.
Trade on a paper account
Shoot blank bullets ! We shall start with planning then entering the trade on a demo brokerage account. Funny enough, we then expect it won’t be too much of a smooth ride so that you can practise a few adjustments. It is also a good opportunity to better understand the broker platform and learn how to negotiate each order with the broker. Trading options is indeed quite different from other asset classes like FX or Futures as the bid-ask spread is generally somewhat wider and placing market orders would impact performance significantly. Fortunately most brokers now have very realistic demo account features particularly if the account is funded to have access to real-time data.
Secondly, practice makes perfect. It is essential to get into a regular routine, a trading plan and stick to it. Trading is a matter of getting the rules in your bloodstream, make it a second nature!
Shoot live bullets ! The proof is always in the pudding! It is important, as soon as confident with the strategy to trade at least a single tranche of the position, regardless of the size of the account. The notion of margin becomes important even if the core strategy uses a remarkably stable margin amount. Also that practice is important to try and optimise entry / exit points without feeding generously the broker and market makers.
A normal one-tranche RUT or SPX Weirdor position requires around $18000 margin (Reg. T) to trade. However, the first trades can be placed on IWM or SPY that costs 1/10 i.e. less than $2000. While the IWM ETF tracks the index pretty well, it does distribute a dividend and commissions are somewhat higher in comparison to the size of the trade. It is thus meant to be a trial trade at best.
Earn While You Learn
Successful coaching requires going through three stages: Validation – Gratification – Self-Realisation. This means that a first live trade will always be placed within the 2 to 3 months to review the methodology in practice. You can’t learn properly without some skin in the game, without an immediate feedback. Rest assured, you’ll sleep at night… Remember the main strategy consists of only one trade for the whole month. Some months may seem absolute bliss because there is nothing to do. However, while the ideal scenario appears to be a great confidence booster in the short term, there is no better teaching than going through a rocky market with one or two adjustments. The main strategy has a track record showing 10-11 profitable months each year, so gratification is palpable, tangible. After 6 to 12 months, mastering the trade takes you to the next level, allowing you to give back, teach, exchange, explore within the OM Community. The journey is certainly not over yet…
Count on and be part of the OM Community
Options Masters is clearly positioned in the « Coaching & Community » segment. Some websites use it as an add-on to formal training or an alert service, and often capitalise on a central figure, a guru or a well-known mentor. This is fine, and often reassuring at first for beginners, and we are at OM very thankful to our own mentors. However OM has taken another angle: building the community around successful techniques anyone can learn and not depend on a « father figure », developing a peer-to-peer network of like-minded traders with whom any member can improve skills and performance without the classic mentor-student role models. Some mentors actually never trade. Some trade differently from what they actually teach. With OM, there is no gap between your trading and your coach’s trading even though it is clear that more capital equates to better flexibility. Apart from that, we are all on the same boat.
A public Forum is available on this site, and the peer-to-peer network can be reached here (members only).
Best is to contact us for a free assessment and plan forward.
This post is also available in: Anglais