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 the 80/20 rule, but applied to options trading. We all have heard the 80/20 rule in some form or fashion basically that 20% of your inputs is responsible for 80% of the output or 20% of the population holds 80% of the wealth. Whatever discipline or vertical it's applied to, we all know the general concept. Well, I want to put a little bit of a twist and spin on that and tell you that in trading, I think the 80/20 rule applies as following. 80% of trading is psychology, 20% is mechanics and that's the twist that I think you should really hone in on here today and think about over the next couple of days, is that trading is really a mental game. In fact, it's the most mental game that you could possibly be in because you have money, you have moving numbers and charts, you have geopolitical issues, you have consumer issues, global issues, country risk, company risk. There are so many