WHY CERTAIN TRADING STRATEGIES DON'T WORK - Scaling In Explained - Options trading - Swing Trading

This is a clip from one of my live trading sessions a few days ago. I was going over an excerpt from the book “The Intelligent Investor” by Benjamin Graham, and I stopped to focus on the part where he discusses speculation and explains how gaudy stock market and day trading strategies are inherently flawed. For those of you who don’t know who Benjamin Graham is, read up on him, he was Warren Buffet’s mentor and one of the greatest investors of all time. This book he writes explains his approach to investing and think it is a must read for anyone looking to trade options or get into the stock market. I will do a book review on it in the future, but in the meantime this will do as this is one of my favorite parts. Hopefully you guys get the message, if you want to read “The Intelligent Investor” just google it and there are several free pdfs online! As I wrap up that short spiel based on what Graham says, I move into scaling in. What is scaling in? As I explain, it is a trading strategy to establish a position in a stock or option. In a nutshell, instead of just buying what you want all at one time, you break it down into 2-4 smaller orders to make up the amount you wanted to buy. So lets say you wanted to spend $1000 on an option. Instead of buying one option at one time, you can spend $250 each week or every few days an buy in at 4 separate orders. The purpose of this is so that you can get the best price and make sure you do not buy in to high and can account for that just in case you do. It is very useful and one of the most used tools in my arsenal personally. Same thing applies to selling as well too! Scaling in and scaling out of options and stocks! Let us know if you guys have any questions or video requests! Please SUBSCRIBE to the channel LIKE, SHARE, and COMMENT so I have questions to answers and things to talk about. If you think you can hang with the brothers and are qualified to be one of the 25 people we accept every quarter to join my 3-month mentoring program, where you are able to watch me trade stocks LIVE every second of the day, every day of the week and be able to ask me questions live while I trade, go to http://www.thetradingfraternity.com to request and application. The lazy an un-dedicated need not apply. NEXT PLEDGE CLASS STARTS JANUARY 2, 2017 Application deadlines: December 16th 2016: Deadline to submit application December 17th 2016: Group Interviews December 21th 2016: Acceptances January 2nd, 2017: Next pledge class begins If you have any questions about me or what we do, I have a 9,000 word FAQ here: http://www.thetradingfraternity.com/FAQ If you haven't done so follow me on social media! Twitter: http://www.twitter.com/JoshAnswers instagram: http://www.instagram.com/TheTradingFraternity Facebook: http://www.facebook.com/TradingFraternity Sign up to be a TTF Citizen and get access to our private LIVE webinars 2x a week, private newsletter, and REAL ESTATE chatroom!: http://www.TTFCitizen.com Apply for mentorship: http://www.TheTradingFraternity.com

Comments

1. I'm new to trading and I'd like to know something. If you're trading stocks/options you pay a fee right? Let's say that fee is 10 dollars. When you open a trade will you always begin with -10 dollars for that trade? So do you first have to make up that fee before gaining profits?
2. Hi dude what software is this called that you are using ??
3. Thanks very nice video thanks for sharing!
4. Hey Josh, love your videos. One caveat though, dollar cost averaging is rarely ever a good idea. Mathematically it does not reduce risk and more often than not creates more risk.
5. Can you make a beginner video? Like for new people to the stock market. I only have 5,000. I'm poor and want to become rich can you like show? Walkthroughs of what to look for and explain what are the important things I need to look after? And Things I need to know. I'm only 17, I'm low class. Really broke, And want to learn how to do these things.
6. Nice Video - Love how you explained it...
7. I remembered reading that part! Didn't understood too well so thank you for making it clearer:)
   Great content Josh!