103 – Consistent Options Income with John Richardson
14 Mar, 2016 / By: Brandon Clay
John Richardson on flying traffic planes, searching for the trading Holy Grail, and settling for consistent income using options.
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John Richardson is a full-time options trader. He’s been trading since the late 1980s. He’s traded stocks, futures, forex, and options. He’s the owner of consistentoptionsincome.com and he resides in sunny, San Diego, California.
Best Trading Advice
“I’ve never received good trading advice.”
- Buying options
- Time decay
- Being adjustable
From the Trader’s Story
“I think offloading your money to someone else to do the heavy lifting for you is just a bad idea when it comes to investing or finance.”
“The reason for the trade is to create an income, and with income you it to be consistent.”
“I don’t care who you are as a trader, we all get humbled.”
“I think there are no heroes in the market and we shouldn’t strive to be heroes.”
“Try to be strategic in your trading.”
Resources Mentioned by Trader
Favorite Trading Book
You know what’s really cool about trading?
You can aim to make a million bucks a year – and do it. Really. You can also aim for some consistent income to smooth out your months. And there’s a legit way to do that. What this week’s guest, John Richardson covered was an interesting way to do that with options. True, he didn’t give us all the ins-and-outs of the strategy. But that’s not the point in this case. The point is to give you a vision of what’s possible with trading. And John gave us that vision…if we’re ready to receive it.
When I asked him about the biggest mistake newer traders make, John talked about not having reasonable expectations for newer traders. John said…
“They’re swinging for the fences…it’s a matter of reigning in your expectations to something that’s more modest and achievable.”
This one really hit home.
It’s something that I’m dealing with right now. I’m struggling with making consistent pips in my forex trading at the time of this podcast. Maybe I’m aiming too high. Perhaps my expectations should be one pip this month. Then two pips next month. Whatever I do, don’t go negative. Maybe that should be my plan going forward. You get the picture – reasonable expectations are a good foundation to build on.
That’s it for this podcast. Thank you again for joining me today – I appreciate all the feedback, emails, and support along this journey. You guys have been great cheerleaders in this effort – so thank you.
And your call to action this week is to say ‘thank you’ to someone today. As we’re trying to achieve goals and make things happen, sometimes we forget to be thankful to someone who’s helped us along or just offered a listening ear. Or to God. Whoever you’ve neglected to thank, thank them today. Send an email, pick up the phone, or let them know in person how grateful you are for their work on your behalf. Tell them ‘thank you’. It will make their day and yours too.
On the next episode, we cover my trading results from February 2016. Not fun, but I gotta do it.
Until then, all the best!