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 be talking about why unrealistic return expectations lead to unfathomable drawdowns in your account. And this is a really important concept because as a lot of new people continue to join Option Alpha, continue to get started in this world of trading outside of the traditional stock investing that most people are used to, the natural tendency is to have these unsane, unrealistic expectations, these expectations that you can do 50%, 70%, 80% returns in a given year or in some cases, people are saying that they want to do 30% per month. And while that is not necessarily something that is unachievable, the probability of getting to those levels is so, so, so slim that if you were to start working towards a 30%, 50% annualized return, you could go through some unfathomable drawdowns. And I don’t mean that lightly. I mean, some of the back test that we’ve seen where people are shooting for super high a