My high school buddy KW inspired me to take on systematic trading, but my other high school buddy FA showed me that I had Options. Pun aside, this has made all the difference. I have learned a LOT.
Fun fact: FA once recommended that I take a position with TSLA calls — the position went 50x. Unfortunately I didn’t understand what he was talking about at the time, and I missed out. But #thereIsAlwaysNextTime
Options are a world away from trading bearish and bullish price action. KW once described the comparison best, and I’ll try to paraphrase: trading the ups and downs of stocks is comparable to driving a car to and fro. When you trade options, you’re at the helm of of an F-16 jet –complete with 360 mobility, increased range, and speed. Between FA’s timely guidance and KW’s truth, I decided to focus on trading options.
Trading the ups and downs of stocks is comparable to driving a car. When you trade options, you’re at the helm of of an F-16 jet.
My other high school friend, GE, also welcomed me into the options fray and gave some advice that has stuck with me since. A rather symmetrical, yet asymmetrical, poetic bite of wisdom:
The goal is not to make money,
The goal is not to lose money.
There is a nuance here that many will miss. Try reading it a few times to see if anything pops out at you. TLDR: Greed is a liability.
UO is another high school friend that got pulled into options by FA around the same time I did. He’s the one that got me thinking long term, and about the value of company fundamentals–he’s more disciplined and patient than I.
UO recommended I read “The Intelligent Investor” and I think you should too. It’s a playbook for long term strategies that can be codified. You should read it. Warren Buffet thinks so too.
Random takeaway from this post: go to a good high school where you can befriend smart people and maintain those friendships. 🤝