Options give a trader incredible leverage and the returns can be huge whether you are buying or selling, and option buyers have limited risk.

The way we put the odds on our side with options trading is that we need to change the rules of the market so that we are no longer subject to the conventional wisdom of guessing the direction of the market to make a profit; Yes, we are going to change the rules.

Let’s look at an example, in the last global financial crisis stock markets fell to all-time post-depression lows, if you had money invested in stocks at the time you had to make some decisions, sell everything and cut your losses. or buy some stocks at a low price and wait for the price of those shares to go up so you can sell them for a profit.

The problem here is that in both cases your decisions are based on guessing the direction of the market, fortunately a situation like the global financial crisis does not occur regularly, but even in such a situation it is difficult to predict the direction of stocks. for short-term investments.

This is the reason why most market traders lose because most market traders make the wrong assumption when it comes to guessing the direction of the market.

If we could guess the direction of the market on a regular basis, we would all be very rich, of course, that is not the case for most traders.

Putting the odds in your favor is THE answer. We are no longer looking to guess the direction of the market, what we are going to look at is trading within a range, yes the same method of options trading used by the few who make their living from options trading.

Specific markets will go up and down throughout the trading year, however, and this may surprise you, most markets will only go up or down very few times in a trading year, they have to break out of a particular range. The regular trader watches this change in the market to make money, however this type of movement or direction only happens very rarely during a trading year, in some cases it may only happen a few times within that year.

So what we are concerned with is finding a strategy that makes money as long as the market is range bound and this happens 80% of the time or more within a trading year. So why wait to guess the direction of the market when it only happens a few times a year when we can trade consistently over 80% of the time? Yes, the markets are range bound almost 80% of the time more than they are out of range.

All we are concerned with is the expected range of the markets, or the size of the move.

By caring about trading within a range rather than the direction of the market, we have turned the rules in our favor.

This is the first step of our simple winning strategy. The next thing is to find a strategy that works.