The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “How do you not lose money in the stock market?” Well, it’s basically impossible not to go through some potential drawdown over a long period of time. Even cash loses money. When you think about investing, you think to yourself, “Well, if I’m not going to lose…” The only way not to lose is just not to be even involved in the market, but that would mean that most of your money is sitting idle in cash and you’re going to lose purchasing power just due to inflation. If you accept now the possibility that anything you do has risk, even cash, even gold, even just money under your mattress, then you should be willing to accept risk that aligns with your overall goals. We know that we’re going to go through periods where we lose and where we have drawdowns. I think Charlie Munger famously said in the 2008-2009 crash, “If you didn’t lose 30% or 40% of your account, you didn’t know wha