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The Option Genius Podcast: Options Trading For Income and Growth


Aug 17, 2023

The maximum money exercise. All right, this is gonna be fun, so chances are that you're not trading as well as you want. Chances are you're not making as much money as you want. And you might, or you might not know, the reason why.

I don't know, maybe you need a better strategy. Maybe you're not disciplined enough, maybe. And then you can enter whatever excuse in the blank, right? Now, in reality, I bet that you have all the answers you need. I bet that you already know the basics of trading, you know how to do it. But something is holding you back. I mean, realistically, how hard is it to sell a covered call, right? I mean, that's the most basic trade, you can make money on it, you can be consistently profitable with that, how hard is it, right?

And if you don't know what a covered call is, you buy 100 shares of stock that you like, okay, and you sell an out of the money call on out of the money call option to bring in some credit. That's it, that's all you got to do, then you wait till expiration, at expiration, If you get called away, meaning the stock is taken from you. That's great. That's wonderful. You buy more stock, you do it again. If on the other hand, the option expires, and you still have the stock, that's great. Go sell another one. Right?

A fifth grader could do this. So what's stopping you? Right? Why do you trade well, for a few trades, and then give it all back? Why do you fail to follow your own trading rules? And I hear this over and over and over again, from students. Right?

When you're in a trade that's going bad. You kind of know what you need to do. You kind of have an idea like, oh, man, I need to do something about this trade. I should do some this getting bad. But still you do nothing. And then you justify it, right? You rationalize, oh, yeah, you know, I needed to pay my dues. I needed to learn from that mistake. Really, you needed to learn you need you have to lose money to learn?

Is there an easier way? You know, really? The answer is that it is subconscious. The reason we do well, and then we start messing up our subconscious. You've heard about it, right? It's self sabotage. we hurt ourselves. And it happens with money. And just about anything. Happens with businesses happens with relationships, it happens with trading, it happens with health, happens with all sorts of things. And we're going to work on that right now. So stay tuned.

First of all, I have to give full credit to this to Mr. Allen Sultani. All right. He is one of my mentors. And actually, he teaches marketing and sales. But he spends most of his time teaching about human psychology. So this is our works, okay, and I'm going to quote him here, so that I get this right.

All right, so "you'll only be able to make money close to what your subconscious mind allows you to make". And as you get closer and closer to that boundary, you'll start to notice, is a lot of resistance, shiny object syndrome, and all sorts of other thoughts that start to work against you. What was once easy now becomes difficult. What used to take a few minutes now takes days, and once and what once you thought you could do now becomes impossible. In the process, the mind will start to conjure up all sorts of stories, justifications and bullshit to keep you from hitting the boundary, which I call the maximum money boundary.

And the first key to overcoming this boundary is knowing what your boundary is in the first place. And here's how you do it. So you close your eyes and you take a deep breath, say this statement in your mind. I make $5,000 a month, then you keep increasing this to make to "I make $10,000 a month", and you keep going in increments of either 5,000 or 10,000 or whatever is reasonable. Okay? If you're doing well, really well. Then you go up in increments of 25,000 to 50,000 and in some cases $100,000. Okay. As you're doing this process, pay attention to where your subconscious mind goes. Hell yeah. And it feels good. But when you say a number for example, I make $10,000 a month. Notice it starts to feel bad, and a voice will appear out of nowhere that goes something like "Yeah, right, or bullshit". And in a sense, makes you feel as if you're telling yourself a lie. This little voice, this lie itself is your outer boundary of what you can make. 

And that's generally where you're stuck. Now, from my experience, when I'm about 50%, near the boundary, remember, Alan is saying this, when I'm about 50%, near the boundary, things will start to go to shit, get harder, and I have to work through them. I used to use a whole lot of force and effort to make things easier to work through this boundary. But that wasn't very effective, as you're literally fighting against yourself. And as your subconscious knows a whole lot more than you, then that's one battle, you're never going to win. So instead, what you want to do is start doing identity change work. This requires a lot of how to, but in short, just saying to yourself, that I make whatever the goal and then do it with feeling. So if it gets harder to attend, I make 10,000 a month, and you do it with feeling. After doing that for about a week or two, regularly, come back and retest your boundary. And what you'll notice is that everything magically became a whole lot easier. Money started coming in, and things are now working for you".

That makes sense. It really is that simple. And it's not just about the money, it's about the actions to like for me, I had a huge mental block about trading for other people. I couldn't do it for years I didn't want to then I don't want to I don't want to own on. The reason was I had a mental block. In the back of my mind. I was like, No, you can't do it. You can't do it. Then I bit the bullet. And I created the hedge fund. And I want to side note, I want to thank you to everybody who has reached out wanting to invest with me. I mean, I can't. It's super humbling. And it's unbelievable that there are so many of you that want to turn your hard earned money over to me. So I really appreciate that. And thank you. Okay, but now back to the back to the thick gear. So ask yourself this question, right? Where are you stuck? Find out, find out what level you're stuck at.

And then go further, and then find out why you're stuck there. Right? Because if I were to tell you, hey, you know what you can make $50 a month trading? You'd probably be like, "Yeah, I can do that". You can make $500 a month trading? I'll probably lose a couple a year. But most of them are you guys. But yeah, we could do that.

You can make $25,000 per month trading? You can right now. In the back of your mind, some of you a lot of you are like me in No, I don't know. I don't know. I don't know. I don't think so. Yeah, I don't know. I don't use the proof. I don't I did all the stuff starts happening. Right? So you need to figure out where your limit is. So you do that simple question. You know, just go up in increments. Maybe if you don't do to increments of 5000, you do increments of 2000 or 1000? You know, where do you stop? Where does it start feeling like a lie? Where does it start feeling weird? Like, oh, no, I don't know, when you're not confident in the number anymore. Okay?

And remember it's not I am making 10,000, it's I can make 10,000. You have to have that confidence. And if you think you can, then you can. So you want to figure out where the boundary is. And then you want to figure out why it's there. So to do that, I have some other questions for you. So you can ask different questions like, if I was starting all over again, what would I do differently? Right. If I was starting from scratch, I didn't know anything. What would I do differently? Different paths, different strategies, blah, blah, blah, whatever. If I had all the money in the world, how would I approach this? If I know no boundaries, no lack of resources. I had all the money in the world out approached this.

Who can help me with this? Or even just do it for me? We did an episode before on who not how, you know, there's a lot of things out there. You don't have to figure out if you just find somebody else that already knows them and can do them for you. There's just simpler, faster, easier, just let somebody else do it that enjoys doing it more than you. Another question is if I was teaching somebody to do this, what would I say to them? How would I teach them? What would I tell them? Now, the truth of the matter is most of us already know enough. We already know everything we need to know most of us. Well, we limit our ourselves. So I want you to use this exercise to expand your boundaries. All right? That's all it is. It's self-imposed, self-inflicted wounds, self-sabotage. It's crazy. I don't know where like, you've come, subconsciously, we all have it, nothing to be ashamed of. But until you go through it and break it, you're gonna stay at that same level, there's nothing I can teach you, nothing I can do for you, to make you pass through that level, unless you do it yourself. And you go, you know, you convince yourself that you can do it. And then eventually, when you get to the higher level, again, you're gonna get blocked again, then you get blocked again, you get blocked again, I was having this conversation with one of our traders today. It's just, it's amazing. The limitations we put on ourselves. And part of it is because we've never seen it. We've never seen somebody making a million dollars a day trading. So for us, we're like, oh, "Man, that's not possible million dollars a day trading?". Now, I'm just coming up with this. But I'm sure there are guys on Wall Street. There are hedge fund managers that are making that much money because their accounts are big enough. Right? For us. They were like, Oh, my God, I'm just so totally out of my comfort zone. I couldn't do that. Why not? Why not? You have the skills? If not, we'll teach him to you. And I got to ask myself that same question. Like why can't I make a million dollars a year, a day? I got the skills. I know I have the skills. I just don't have whatever. It's a blockage, right? So we had to work through it, though. That's it, very simple. Until next time, my friends, trade with the odds in your favor.